For accounting periods ending on or after 10 October 2018 where a company transfers an asset to a group company that is resident in an EEA state that is not within the charge to UK corporation tax, it is possible for the payment of the corporation tax payable as a result of the transfer to be deferred. However, HMRC has indicated that this relieving provision will be repealed in due course following the ECJ's ruling on the Gallaher case (see below for more details).
In order for such deferral to be available the transfer must be a transfer to which TCGA 1992, s 171 would have applied had the transferee been UK resident at the time of the transfer1.
Where this relieving provision applies it is possible for the transferor company to elect to pay the corporation tax due in respect of the transfer in six equal instalments over a five-year period, with the first instalment being due nine months after the end of the accounting period in
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Web page updated on 17 Mar 2025 13:35