Taxes Consolidation Act 1997 section 629

Deferral of exit tax

Section 629 allows a company that is liable to exit tax to elect to pay that tax in six equal yearly instalments, and sets out the conditions for the election, the circumstances in which the deferral is discontinued, and the interest and collection provisions that apply.

• A company may elect to pay exit tax in six equal annual instalments, beginning on the specified date, with the remaining five instalments due on each anniversary of that date.
• The election must be made in the company's tax return, filed electronically, and the company must file annual statements confirming its continued tax residence in a relevant territory.
• The deferral is discontinued and all unpaid tax and interest become immediately payable if certain events occur, such as the disposal of the migrated assets, insolvency, or failure to pay instalments within 12 months of the due date.
• Simple interest is charged on the total outstanding exit tax at 0.0219% per day from the specified date to the date of payment, and is added to each instalment as it falls due.