New special rule: chargeable event gains
309.Paragraph 139 provides for Chapter 9 of Part 4 of ITTOIA to be amended. This provides a new charge on chargeable event gains arising in a temporary period of non-residence and makes related amendments.
310.Paragraph 140 inserts new section 465B in ITTOIA.
311.Subsection (1) of new section 465B provides that the section applies if an individual is temporarily non-resident (as defined in paragraph 110).
312.Subsection (2) of new section 465B provides a charge for the year of return following a temporary period of non-residence if the conditions in subsection (3) are met.
313.Subsection (3) and (4) of new section 465B state the conditions to be met for a gain to be charged under this section. It is necessary that the gain would have been chargeable had the individual been resident in the year in which the gain arose, and assuming that year was not a split year for that individual.
314.Subsections (5) and (6) of new section 465B provide that the amount chargeable in the year of return is the amount that would have been chargeable applying the assumptions in subsection (4).
315.Subsection (7) of new section 465B contains a rule determining the date an insurance or contract is made for the purposes of subsection (3)(b).
316.Subsection (8) of new section 465B provides that in certain circumstances a gain is not chargeable under this section.
317.Subsection (9) of new section 465B provides that nothing in any double taxation arrangements is to be read as preventing the charge under this section.
318.Subsections (10) and (11) of new section 465B provide statutory cross-references for terms used in the section but defined in legislation elsewhere.
319.Paragraph 141 inserts new subsection (7) into section 468 of ITTOIA ensuring no double charge arises under sections 465B and 468.
320.Paragraph 142 inserts new subsection (4A) into section 514 of ITTOIA and provides that the special rule in subsection (4) charging the gain for the tax year in which the insurance year ends takes precedence over the timing rule in section 465B.
321.Paragraph 143 makes a consequential amendment to section 541 of ITTOIA.
322.Paragraph 144 makes a consequential amendment to section 552 of ICTA.
