CTM34190 | Residence: outward company migration: recovery of tax from other persons

If tax due by a company which has migrated is not paid within six months from the time it was payable, it may be recovered under TMA70/S109E, but only on instruction from BAI (Base Protection). Unpaid tax may be recovered from either

• any company which has been a member of the same group as the migrating company at any time in the period beginning twelve months before migration (but not earlier than 15 March 1988), or

• any controlling director of the migrating company or of a company which controls it (within the same period).

A group is defined in terms of TCGA92/S170 with the substitution of 51 per cent subsidiary for 75 per cent subsidiary. Control is defined as at CTA10/S450.

The provisions of TMA70/109E may be used to recover tax whether or not arrangements have been made under TMA70/S109B or penalties have been incurred.