Part 5Miscellaneous income
Chapter 5Settlements: amounts treated as income of settlor F2or family
F1Benefits matched with protected foreign-source income
Ss. 643A-643N and cross-heading inserted (with effect in accordance with Sch. 10 para. 21 of the amending Act) by Finance Act 2018 (c. 3), Sch. 10 para. 11 (with Sch. 10 para. 22)
643JCases where income treated as arising to recipient of onward gift
1
Subsection (3) applies if—
a
this section applies (see section 643I(1)), and
b
the subsequent recipient is UK resident for the gift year, and
c
the subsequent recipient is UK resident for the matching year if that is later than the gift year, and
d
none of sections 809B, 809D and 809E of ITA 2007 (remittance basis) applies to the subsequent recipient for the charging year.
2
Subsection (3) also applies if—
a
this section applies (see section 643I(1)), and
b
the subsequent recipient is UK resident for the gift year, and
c
the subsequent recipient is UK resident for the matching year if that is later than the gift year, and
d
section 809B, 809D or 809E of ITA 2007 applies to the subsequent recipient for the charging year, and
e
the whole, or part only, of the onward payment is remitted to the United Kingdom in the charging year.
3
For income tax purposes, an amount of income—
a
equal to the amount or value of so much of the onward payment as is within any of sub-paragraphs (i) to (iii) of section 643I(1)(e), or
b
where this subsection applies because of subsection (2) and part only of that much of the onward payment is remitted to the United Kingdom in the charging year, equal to the amount or value of that part,
is treated as income of the subsequent recipient for the charging year, subject to subsection (4).
4
The amount given by subsection (3) (before adjustment under this subsection) is to be adjusted as follows—
a
deduct any part of the amount on which the subsequent recipient is liable to income tax otherwise than under this section, and
b
if following any adjustment under paragraph (a) the amount exceeds the amount mentioned in section 643I(1)(a), deduct the excess.
Words in Pt. 5 Ch. 5 heading inserted (with effect in accordance with Sch. 10 para. 21 of the amending Act) by Finance Act 2018 (c. 3), Sch. 10 para. 3(2)