Taxation (International and Other Provisions) Act 2010 Schedule 9 paragraph 30

Arbitrage: contributions to capital of UK resident companies before 16 March 2005

Paragraph 30 of Schedule 9 provides a transitional exemption from the tax arbitrage receipt notice rules for capital contributions made to UK resident companies before 16 March 2005.

• The tax arbitrage provisions include powers for HMRC to issue "receipt notices" to companies that receive amounts giving rise to a tax mismatch.
• These receipt notice rules (contained in sections 249 to 254 of the Act) do not apply to contributions to the capital of a UK resident company made before 16 March 2005.
• This means that any capital contribution received by a UK resident company before that date is grandfathered and falls outside the scope of the receipt notice regime.
• The cut-off date of 16 March 2005 reflects when the original anti-arbitrage legislation took effect, ensuring the rules were not applied retrospectively to earlier transactions.