Finance (No. 2) Act 2017

ITA 2007

38 After section 735A insert—

“735B Settlor liable under section 733A and remittance basis applies

(1) This section applies in relation to income if—

(a) the income is treated by section 732 as arising to an individual (“the beneficiary”) for a tax year,

(b) another individual (“the settlor”) is under section 733A(2) or (3) liable for tax on the income, and

(c) section 809B, 809D or 809E (remittance basis) applies to the settlor for that year.

(2) The income (“the transferred-liability deemed income”) is treated as relevant foreign income of the settlor.

(3) If, for the purposes of section 735 as it applies in relation to the beneficiary, any benefit or relevant income relates to any part of the transferred-liability deemed income then, for the purposes of Chapter A1 of Part 14 as it applies in relation to the settlor, that benefit or relevant income is to be treated as deriving from that part of the transferred-liability deemed income.

(4) In the application of section 832 of ITTOIA 2005 in relation to the income, subsection (2) of that section has effect with the omission of its paragraph (b).”