Income Tax (Trading and Other Income) Act 2005

714 Exemption of profits from FOTRA securities

(1) No liability to income tax arises in respect of profits from a FOTRA security if conditions A and B are met.

(2) Subsection (1) is subject to subsection (5).

(3) Condition A is that the profits are stated in the exemption condition to be exempt from income tax.

(4) Condition B is that any requirements for obtaining the exemption imposed by the security’s conditions of issue are met.

(5) Whatever the exemption condition provides, amounts charged under the provisions specified in subsection (6) are not exempted by subsection (1).

(6) The provisions are—

• Chapter 5 of Part 5 (settlements: amounts treated as income of settlor) so far as it applies to income within section 619(1)(a) or (b), and

• Chapter 3 of Part 17 of ICTA (anti-avoidance provisions: transfer of assets abroad).

(7) This section does not affect the need to claim repayment of tax within the time limit applicable for a claim.