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Part 13U.K.Tax avoidance

Chapter 2U.K.Transfer of assets abroad

Modifications etc. (not altering text)

C1Pt. 13 Ch. 2 applied by 1988 c. 1, s. 762ZA (as inserted (21.7.2008 with effect in accordance with Sch. 7 para. 98 of the amending Act) by Finance Act 2008 (c. 9), Sch. 7 para. 94)

C2Pt. 13 Ch. 2 applied (with effect in accordance with art. 1(2)(3) Sch. 1 of the amending S.I.) by The Offshore Funds (Tax) Regulations 2009 (S.I. 2009/3001), regs. 1(1), 21

Charge where benefit receivedU.K.

732 [F1Individuals] receiving a benefit as a result of relevant transactionsU.K.

(1)This section applies if—

(a)a relevant transfer occurs,

(b)an individual [F2receives a benefit in a tax year],

(c)the benefit is provided out of assets which are available for the purpose as a result of—

(i)the transfer, or

(ii)one or more associated operations,

[F3(d)where there is a time in the year when the individual is relevantly domiciled, the individual is not liable to income tax under section 720 or 727 by reference to the transfer, and]

(e)the individual is not liable to income tax [F4, under any provision that is none of section 731 of this Act and sections 643A, 643J and 643L of ITTOIA 2005,] on the amount or value of the benefit F5....

(2)Income is treated as arising to the individual for income tax purposes for any tax year for which section 733 provides that income arises.

(3)Also see that section for the amount of income treated as arising for any such tax year.

[F6(4)For the purposes of subsection (1)(d), the individual is “relevantly domiciled” at any time if at that time—

(a)the individual is domiciled in the United Kingdom, or

(b)the individual is regarded for the purposes of section 718(1)(b) as domiciled in the United Kingdom as a result of section 835BA having effect because of Condition A in that section being met.]

Textual Amendments

F1Word in s. 732 heading substituted (with effect in accordance with Sch. 8 para. 39 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 8 para. 35(4)

F2Words in s. 732(1)(b) substituted (with effect in accordance with Sch. 8 para. 39 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 8 para. 35(2)(a)

F3S. 732(1)(d) substituted (with effect in accordance with Sch. 8 para. 39 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 8 para. 35(2)(b)

F4Words in s. 732(1)(e) inserted (with effect according to Sch. 10 para. 21(1) of the amending Act) by Finance Act 2018 (c. 3), Sch. 10 para. 14(a),

F5Words in s. 732(1)(e) omitted (with effect according to Sch. 10 para. 21(1) of the amending Act) by virtue of Finance Act 2018 (c. 3), Sch. 10 para. 14(b)

F6S. 732(4) inserted (with effect in accordance with Sch. 8 para. 39 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 8 para. 35(3)