Section 609 — Corporation Tax Act 2009: Company ceasing to be UK resident

Company ceasing to be UK resident 609 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 —

a for the purposes of a permanent establishment of the company in the United Kingdom , b for the purposes of the company's trade of dealing in or developing UK land, c for the purposes of the company's UK property business, or d for the purposes of enabling the company to generate other UK property income (within the meaning given by section 5(6)).

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).