(4) A notice may be given under subsection (2)(b) even though the requirement
of subsection (2)(a) is not met.

(5) If a notice is given under subsection (2)(b) in a case where the requirement
of subsection (2)(a) is not met, the CFC’s trading finance profits are to be
5apportioned on a just and reasonable basis between—

(a) the part of the accounting period falling before 20 March 2013
(“period A”), and

(b) the remaining part of the accounting period (“period B”).

(6) So far as the CFC’s trading finance profits are apportioned to period A, they
10are to be treated as non-trading finance profits if the CFC is a group treasury
company in period A (and subsection (3) applies to them accordingly).

(7) For the purpose of determining if the CFC is a group treasury company in
period A, subsection (4) applies—

(a) as if references to the accounting period were to period A, and

(b) 15as if paragraph (b) were omitted.

(8) So far as the CFC’s trading finance profits are apportioned to period B, they
are to be treated as non-trading finance profits if the CFC is a group treasury
company in period B (and subsection (3) applies to them accordingly).

(9) For the purpose of determining if the CFC is a group treasury company in
20period B, subsection (4) applies as if references to the accounting period
were to period B.

Section 221

SCHEDULE 46 Proceeds of crime: powers of officers of Revenue and Customs

Proceeds of Crime Act 2002

1 25The Proceeds of Crime Act 2002 is amended in accordance with paragraphs
2 to 20.

2 (1) Section 289 (searches) is amended as follows.

(2) In subsections (1), (1A)(a) and (2), for “a customs officer” substitute “an
officer of Revenue and Customs”.

(3) 30In subsections (1C) and (1D), for “customs officer” substitute “officer of
Revenue and Customs”.

(4) After subsection (5)(b) insert—

“(ba) are exercisable by an officer of Revenue and Customs only so
far as the officer is exercising a function relating to a matter
35other than an excluded matter,”.

(5) After subsection (5) insert—

“(5A) The reference in subsection (5)(ba) to an excluded matter is to a
matter specified in section 54(4)(b) of, or in any of paragraphs 3, 5, 7,
10, 12 and 14 to 30 of Schedule 1 to, the Commissioners for Revenue
40and Customs Act 2005.”

3 In section 290 (prior approval for search)—

(a) in subsection (4)(a), for “a customs officer, a customs officer”
substitute “an officer of Revenue and Customs, such an officer”, and

(b) in subsection (6), for “customs officer” substitute “officer of Revenue
5and Customs”.

4 In section 291(2) (report on exercise of powers), for “customs officer”
substitute “officer of Revenue and Customs”.

5 In section 292 (code of practice)—

(a) in subsection (1), for “customs officers” substitute “officers of
10Revenue and Customs”, and

(b) in subsection (6), for “a customs officer” substitute “an officer of
Revenue and Customs”.

6 (1) Section 294 (seizure of cash) is amended as follows.

(2) In subsections (1) and (2), for “A customs officer” substitute “An officer of
15Revenue and Customs”.

(3) After subsection (2) insert—

“(2A) The powers conferred by this section are exercisable by an officer of
Revenue and Customs only so far as the officer is exercising a
function relating to a matter other than an excluded matter.

(2B) 20But the powers may be exercised by the officer in reliance on a
suspicion that relates to an excluded matter.

(2C) The reference in subsection (2A) to an excluded matter is to a matter
specified in section 54(4)(b) of, or in any of paragraphs 3, 5, 7, 10, 12
and 14 to 30 of Schedule 1 to, the Commissioners for Revenue and
25Customs Act 2005.”

7 In section 295(1) (detention of seized cash), for “customs officer” substitute
“officer of Revenue and Customs”.

8 In section 296(2) (interest on cash), for “customs officer” substitute “officer of
Revenue and Customs”.

9 30In section 297(4) (release of detained cash), for “A customs officer” substitute
“An officer of Revenue and Customs”.

10 In section 302(6) (compensation), for “a customs officer” substitute “an
officer of Revenue and Customs”.

11 In section 351(5) (person making application to vary or discharge order)—

(a) 35for “a customs officer” substitute “an officer of Revenue and
Customs”, and

(b) for “customs officer” substitute “officer of Revenue and Customs”.

12 (1) Section 352 (search and seizure warrants) is amended as follows.

(2) In subsection (5)—

(a) 40omit paragraph (a), and

(b) in paragraph (c), at the end insert “, a confiscation investigation or a
money laundering investigation”.

(3) In subsection (7), omit “(a) or”.

13 (1) Section 353 (requirements where production order not available) is
amended as follows.

(2) In subsection (10)—

(a) omit paragraph (a), and

(b) 5in paragraph (c), at the end insert “, a confiscation investigation or a
money laundering investigation”.

(3) In subsection (11), omit “(a) or”.

14 (1) Section 369 (customer information orders: supplementary provisions) is
amended as follows.

(2) 10In subsection (5)—

(a) for “a customs officer” substitute “an officer of Revenue and
Customs”, and

(b) for “customs officer” substitute “officer of Revenue and Customs”.

(3) In subsection (7), for “a customs officer” substitute “an officer of Revenue
15and Customs”.

15 In section 375(4) (account monitoring orders: supplementary provisions)—

(a) for “a customs officer” substitute “an officer of Revenue and
Customs”, and

(b) for “customs officer” substitute “officer of Revenue and Customs”.

16 20After section 375 insert—

“Officers of Revenue and Customs

375A Restriction on exercise of certain powers conferred on officers of
Revenue and Customs

(1) This section applies to the powers conferred on an officer of Revenue
25and Customs which are exercisable in connection with—

(a) a production order made or to be made in relation to a
confiscation investigation or a money laundering
investigation,

(b) a search and seizure warrant issued or to be issued in relation
30to a confiscation investigation or a money laundering
investigation,

(c) a customer information order, and

(d) an account monitoring order.

(2) The powers are exercisable by the officer only so far as the officer is
35exercising a function relating to a matter other than an excluded
matter.

(3) The reference in subsection (2) to an excluded matter is to a matter
specified in section 54(4)(b) of, or in any of paragraphs 3, 5, 7, 10, 12
and 14 to 30 of Schedule 1 to, the Commissioners for Revenue and
40Customs Act 2005.”

17 In section 377(1) (persons subject to code of practice), for paragraph (e)
substitute—

“(e) officers of Revenue and Customs.”

18 In section 378 (officers)—

(a) in subsection (1), for paragraph (d) substitute—

“(d) an officer of Revenue and Customs.”,

(b) in subsections (2)(c) and (6)(b), for “a customs officer” substitute “an
5officer of Revenue and Customs”, and

(c) in subsection (4), for paragraph (c) substitute—

“(c) an officer of Revenue and Customs.”

19 After section 408 insert—

“Officers of Revenue and Customs

408A 10Restriction on exercise of certain powers conferred on officers of
Revenue and Customs

(1) This section applies to the powers conferred on an officer of Revenue
and Customs which are exercisable in connection with—

(a) a production order made or to be made in relation to a
15confiscation investigation or a money laundering
investigation,

(b) a search warrant issued or to be issued in relation to a
confiscation investigation or a money laundering
investigation,

(c) 20a customer information order, and

(d) an account monitoring order.

(2) The powers are exercisable by the officer only so far as the officer is
exercising a function relating to a matter other than an excluded
matter.

(3) 25The reference in subsection (2) to an excluded matter is to a matter
specified in section 54(4)(b) of, or in any of paragraphs 3, 5, 7, 10, 12
and 14 to 30 of Schedule 1 to, the Commissioners for Revenue and
Customs Act 2005.”

20 In section 412 (interpretation), in the entry relating to the meaning of
30references to a “constable”, for “a customs and excise officer” substitute “an
officer of Revenue and Customs”.

Commissioners for Revenue and Customs Act 2005

21 In Schedule 2 to the Commissioners for Revenue and Customs Act 2005
(restrictions on functions of Commissioner and officers), omit—

(a) 35paragraphs 13 and 13A, and

(b) the italic heading immediately preceding those paragraphs.

Relationship of provisions of 2005 Act with provisions of 2002 Act

22 Nothing in section 6 or 7 of the Commissioners for Revenue and Customs
Act 2005 (initial functions) restricts the functions in connection with which
40officers of Revenue and Customs may exercise a power under—

(a) Chapter 3 of Part 5 of the Proceeds of Crime Act 2002 (as amended
by this Schedule), or

(b) Chapters 2 and 3 of Part 8 of that Act (as so amended).

Consequential amendments

23 In section 80(1) and (3) of the Serious Crime Act 2007 (amendment of
sections 352(5) and 353(10) of the Proceeds of Crime Act 2002), omit
paragraph (a) and the word “and” at the end of that paragraph.

24 5In Schedule 7 to the Policing and Crime Act 2009 (minor and consequential
amendments), omit paragraph 116.

Section 226

SCHEDULE 47 Corporation tax: deferral of payment of exit charge

Amendments of TMA 1970

1 10TMA 1970 is amended in accordance with paragraphs 2 to 6.

2 After section 59F insert—

“59FA Exit charge payment plans

(1) Schedule 3ZB contains provisions about exit charge payment plans
in accordance with which companies may defer payment of certain
15corporation tax.

(2) Parts 1 and 2 of the Schedule each make provision about the
circumstances in which an exit charge payment plan may be entered
into, and about determining the amount of corporation tax that may
be deferred—

(a) 20see Part 1 in relation to a company which ceases to be resident
in the United Kingdom, and

(b) see Part 2 in relation to a company which is not resident in the
United Kingdom but which carries on, or has carried on, a
trade in the United Kingdom through a permanent
25establishment there.

(3) Part 3 of the Schedule contains provision about—

(a) entering into an exit charge payment plan,

(b) the effect of such a plan,

(c) the content of such a plan, and

(d) 30the methods in accordance with which tax deferred under
such a plan may be paid.”

3 Immediately before section 59G insert—

“Managed payment plans”.

4 (1) Section 109B (provision for securing payment by company of outstanding
tax) is amended as follows.

(2) 35In subsection (1), at the end insert “, subject to subsection (5A).”

(3) In subsection (4)(b), at the end insert “(which may include a proposal to
enter into an exit charge payment plan in accordance with Schedule 3ZB).”

(4) After subsection (5) insert—

“(5A) Condition D does not apply to the extent that payment of the tax is
to be secured by the company entering into an exit charge payment
plan in accordance with Schedule 3ZB.”

5 (1) 5Section 109E (liability of other persons for unpaid tax) is amended as
follows.

(2) After subsection (1) insert—

“(1A) The reference in subsection (1)(b) to the time when tax becomes
payable is a reference to—

(a) 10in a case where an exit charge payment plan has been entered
into in accordance with Schedule 3ZB in respect of the tax, the
time when the tax becomes payable under the plan, and

(b) in any other case, the time when the tax becomes payable in
accordance with section 59D or 59E.”

(3) 15In subsection (2), for “the time when the amount of the tax is finally
determined” substitute “the relevant time”.

(4) After subsection (2) insert—

“(2A) In subsection (2) the “relevant time” means—

(a) in a case where an exit charge payment plan has been entered
20into in accordance with Schedule 3ZB in respect of the tax, the
later of—

(i) the first day after the period of 12 months beginning
immediately after the migration accounting period
(as defined in Part 1 or 2 of Schedule 3ZB, as the case
25may be), and

(ii) the date on which the tax is payable under the plan,
and

(b) in any other case, the time when the amount of the tax is
finally determined.”

6 30After Schedule 3ZA insert—

“Schedule 3ZB Exit charge payment plans

Part 1 company ceasing to be resident in UK

Circumstances in which exit charge payment plan may be entered into

1 (1) 35This Part of this Schedule and Part 3 of this Schedule apply where
an eligible company—

(a) ceases to be resident in the United Kingdom,

(b) on ceasing to be so resident, becomes resident in another
EEA state, and

(c) 40is liable to pay qualifying corporation tax in respect of the
migration accounting period.

(2) The company may defer payment of some or all of the qualifying
corporation tax if it enters into an exit charge payment plan in
respect of it in accordance with this Schedule.

(3) The company may enter into an exit charge payment plan only if
5conditions A to C are met.

(4) Condition A is that before the end of the period of 9 months
beginning immediately after the migration accounting period—

(a) an application to enter into the exit charge payment plan is
made to Her Majesty’s Revenue and Customs, and

(b) 10the application contains details of all the matters which are
required by Part 3 of this Schedule to be specified in the
plan.

(5) Condition B is that on ceasing to be resident in the United
Kingdom, the company carries on a business in an EEA state.

(6) 15Condition C is that, on becoming resident in the other EEA state,
the company is not treated as resident in a territory outside the
European Economic Area for the purposes of any double taxation
arrangements.

(7) In this paragraph—

• 20“double taxation arrangements” means arrangements which
  are made by two or more territories with a view to
  affording relief from double taxation and which have
  effect at the time when the company ceases to be resident
  in the United Kingdom;

• 25“eligible company” means a company that has a right to
  freedom of establishment protected by Article 49 of the
  Treaty on the functioning of the European Union or
  established by Article 31 of the Agreement on the
  European Economic Area.

(8) 30In this Part of this Schedule—

(a) references to the migration accounting period are to—

(i) in a case where an accounting period comes to an
end on the company ceasing to be resident in the
United Kingdom, that accounting period, and

(ii) 35in a case not falling within sub-paragraph (i), the
accounting period during which the company
ceases to be resident in the United Kingdom,

(b) references to a Part 1 company are to a company in relation
to which this Part of this Schedule applies, and

(c) 40references to Part 3 of this Schedule are to Part 3 of this
Schedule as it applies to a Part 1 company.

Qualifying corporation tax

2 (1) The company is liable to pay qualifying corporation tax in respect
of the migration accounting period if CT1 is greater than CT2
45where—

• CT1 is the corporation tax which the company is liable to pay
  for the accounting period, and

Finance (No. 2) BillPage 587

• CT2 is the corporation tax which the company would be
  liable to pay for the accounting period if any income,
  profits, gains, losses or debits arising only by virtue of the
  exit charge provisions were ignored,

5(CT2 will be zero if the company would not be liable to pay any
corporation tax for the period).

(2) The amount of qualifying corporation tax which the company is
liable to pay is the difference between CT1 and CT2.

(3) “Exit charge provisions” means—

(a) 10section 185 of the 1992 Act,

(b) section 187(4) of that Act, where that subsection applies by
virtue of section 187(4)(c),

(c) section 162 of CTA 2009, where that section applies by
virtue of section 41(2)(b) of that Act,

(d) 15section 333 of that Act,

(e) section 609 of that Act,

(f) section 859 of that Act, where that section applies by virtue
of section 859(2)(a), and

(g) section 862 of that Act, where that section applies by virtue
20of section 862(1)(c).

(4) References in this Part of this Schedule and Part 3 of this Schedule
to qualifying corporation tax are to be read in accordance with this
paragraph.

Interpretation: exit charge assets and liabilities

3 (1) 25This paragraph applies for the purposes of this Part of this
Schedule and Part 3 of this Schedule.

(2) “Exit charge assets” and “exit charge liabilities” means assets or
liabilities (as the case may be) in respect of which income, profits
or gains arise in the migration accounting period by virtue of the
30exit charge provisions, and in particular—

(a) “TCGA or trading stock exit charge assets” means those
exit charge assets, other than pre-FA 2002 intangible fixed
assets, in respect of which income, profits or gains arise by
virtue of the exit charge provision mentioned in paragraph
352(3)(a), (b) or (c),

(b) “financial exit charge assets or liabilities” means those exit
charge assets or liabilities in respect of which income,
profits or gains arise by virtue of the exit charge provision
mentioned in paragraph 2(3)(d) or (e),

(c) 40“intangible exit charge assets” means—

(i) those exit charge assets in respect of which income,
profits or gains arise by virtue of the exit charge
provision mentioned in paragraph 2(3)(f) or (g),
and

(ii) 45those exit charge assets which are pre-FA 2002
intangible fixed assets in respect of which income,
profits or gains arise by virtue of the exit charge
provision mentioned in paragraph 2(3)(a) or (b).

(3) In sub-paragraph (2)—

(a) “exit charge provisions” has the meaning given in
paragraph 2(3);

(b) “pre-FA 2002 intangible fixed asset” means an intangible
5fixed asset which is a pre-FA 2002 asset (as defined in
section 881 of CTA 2009).

Part 2 Non-UK resident companies with UK permanent establishments

Circumstances in which exit charge payment plan may be entered into

4 (1) 10This Part of this Schedule and Part 3 of this Schedule apply
where—

(a) at any time during an accounting period (“the migration
accounting period”) an eligible company which is not
resident in the United Kingdom carries on a trade in the
15United Kingdom through a permanent establishment
there,

(b) one or more PE qualifying events occurs in respect of any
assets or liabilities of the company as mentioned in sub-
paragraph (4), and

(c) 20the company is liable to pay qualifying corporation tax in
respect of the migration accounting period.

(2) The company may defer payment of some or all of the qualifying
corporation tax if it enters into an exit charge payment plan in
respect of it in accordance with this Schedule.

(3) 25The company may enter into an exit charge payment plan only if
before the end of the period of 9 months beginning immediately
after the migration accounting period—

(a) an application to enter into the exit charge payment plan is
made to Her Majesty’s Revenue and Customs, and

(b) 30the application contains details of all the matters which are
required by Part 3 of this Schedule to be specified in the
plan.

(4) For the purposes of this Part of this Schedule, a “PE qualifying
event” occurs in respect of an asset or liability of a company if—

(a) 35an event occurs which triggers—

(i) a deemed disposal and reacquisition of the asset or
liability under the exit charge provision mentioned
in paragraph 5(3)(a), (c), (d) or (e), or

(ii) a valuation of the asset under the exit charge
40provision mentioned in paragraph 5(3)(b),

(b) the event—

(i) occurs during the migration accounting period, or

(ii) causes the migration accounting period to come to
an end, and

(c) 45at the time of the event, the company is not treated as
resident in a territory outside the European Economic Area
for the purposes of any double taxation arrangements.

(5) In this Part of this Schedule, references to a PE qualifying asset or
liability are to an asset or liability in respect of which a PE
qualifying event occurs.

(6) In this paragraph “double taxation arrangements” and “eligible
5company” have the meanings given in paragraph 1(7).

(7) In this Part of this Schedule—

(a) references to the migration accounting period are to be
read in accordance with this paragraph;

(b) references to a Part 2 company are to a company in relation
10to which this Part of this Schedule applies,

(c) references to Part 3 of this Schedule are to Part 3 of this
Schedule as it applies to a Part 2 company, and

(d) “permanent establishment”, in relation to a company, is to
be read in accordance with Chapter 2 of Part 24 of CTA
152010.

Qualifying corporation tax

5 (1) The company is liable to pay qualifying corporation tax in respect
of the migration accounting period if CT1 is greater than CT2
where—

• 20CT1 is the corporation tax which the company is liable to pay
  for the accounting period, and

• CT2 is the corporation tax which the company would be
  liable to pay for the accounting period if any income,
  profits, gains, losses or debits arising as a result of any PE
  25qualifying events, and arising only by virtue of the exit
  charge provisions, were ignored,

(CT2 will be zero if the company would not be liable to pay any
corporation tax for the period).

(2) The amount of qualifying corporation tax which the company is
30liable to pay is the difference between CT1 and CT2.

(3) Exit charge provisions means—

(a) section 25 of the 1992 Act,

(b) section 162 of CTA 2009, where that section applies by
virtue of section 41(2)(b) of that Act,

(c) 35section 334 of that Act,

(d) section 610 of that Act, and

(e) section 859 of that Act, where that section applies by virtue
of section 859(2)(b).

(4) References in this Part of this Schedule and Part 3 of this Schedule
40to qualifying corporation tax are to be read in accordance with this
paragraph.

Interpretation: exit charge assets and liabilities

6 (1) This paragraph applies for the purposes of this Part of this
Schedule and Part 3 of this Schedule.