While the UK remains a member of the EU it has to abide by EU treaty provisions. In addition depending on whether a deal is agreed the UK may have to abide by EU law for some years to come. As such FA 2019 s 22 and Sch 7 have been enacted in response to the CJEU finding against the UK in Trustees of the P Panayi Accumulation & Maintenance Settlements (Case C-646/15). The CJEU held that:
the imposition of an exit charge was acceptable where the residence of a trust shifted to another member state but the provisions had to be proportionate; and
Taxation of Chargeable Gains Act (TCGA) 1992 s 80 was not proportionate as the tax payable as a result of the exit charge could not be deferred.
While the UK remains a member of the EU it has to abide by EU treaty provisions. In addition depending on whether a deal is agreed the UK may have to abide by EU law for some years to come. As such FA 2019 s 22 and Sch 7 have been enacted in response to the CJEU finding against the UK in Trustees of the P Panayi Accumulation & Maintenance Settlements (Case C-646/15). The CJEU held that:
the imposition of an exit charge was acceptable where the residence of a trust shifted to another member state but the provisions had to be proportionate; and
Taxation of Chargeable Gains Act (TCGA) 1992 s 80 was not proportionate as the tax payable as a result of the exit charge could not be deferred.
