Section 609 | Company ceasing to be UK resident

(1)If a company ceases to be UK resident, this Part applies as if—

(a)immediately before so ceasing the company had assigned the rights and liabilities under its derivative contracts for consideration of an amount equal to their fair value at that time, and

(b)it had immediately reacquired them for consideration of the same amount.

(2)Subsection (1) does not apply in relation to a derivative contract so far as immediately after the company ceases to be UK resident its rights and liabilities under the contract are held or owed—^F1

(a)for the purposes of a permanent establishment of the company in the United Kingdom,^F1F2

(b)for the purposes of the company's trade of dealing in or developing UK land,^F2

(c)for the purposes of the company's UK property business, or^F2

(d)for the purposes of enabling the company to generate other UK property income (within the meaning given by section 5(6)).^F2

(3)Subsection (1) does not apply if—

(a)the conditions in section 630(1)(a) and (b) are met in relation to the company (transferee leaving group after replacing transferor as party to derivative contract), and

(b)it ceases to be UK resident at the same time as it ceases to be a member of the relevant group.

(4)In subsection (3) “the relevant group” has the meaning given by section 630(4).