(1)After section 739(1) of the Taxes Act 1988 (prevention of avoidance of income tax by means of transfer of assets with or without associated operations) there shall be inserted the following subsection—
“(1A)Nothing in subsection (1) above shall be taken to imply that the provisions of subsections (2) and (3) below apply only if—
(a)the individual in question was ordinarily resident in the United Kingdom at the time when the transfer was made; or
(b)the avoiding of liability to income tax is the purpose, or one of the purposes, for which the transfer was effected.”
(2)This section applies irrespective of when the transfer or associated operations took place, but applies only to income arising on or after 26th November 1996.