Modifications etc. (not altering text)
C1Pt. 5 Ch. 8 applied in part (1.12.2009) (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), 97(2)
C2Pt. 5 Ch. 8 applied in part (1.12.2009) (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), 96(3)(b)
(1)This section applies if an individual is temporarily non-resident.
(2)Distributions within subsection (3) are to be treated for the purposes of this Chapter as if they had been received by the individual, or as if the individual had become entitled to them, in the period of return.
(3)A distribution is within this subsection if—
(a)the individual receives or becomes entitled to it in the temporary period of non-residence,
(b)it is a distribution of a company that is a close company or that would be a close company if the company were UK resident,
(c)the individual receives or becomes entitled to the distribution by virtue of being at a relevant time—
(i)a material participator in the company, or
(ii)an associate of a material participator in the company, and
(d)ignoring this section, the individual—
(i)is not liable for tax under this Chapter in respect of the distribution, but
(ii)would have been so liable if the individual had received the distribution, or become entitled to it, in the period of return.
(4)For the purposes of subsection (3)—
(a)“associate” and “participator” have the same meanings as in Part 10 of CTA 2010 (see sections 448 and 454),
(b)a “material participator” is a participator who has a material interest in the company, as defined in section 457 of that Act,
(c)“relevant time” means—
(i)any time in the year of departure or, if the year of departure is a split year as respects the individual, the UK part of that year, or
(ii)any time in one or more of the 3 tax years preceding that year, and
(d)paragraph (d)(i) includes a case where the individual could be relieved of liability on the making of a claim under section 6 of TIOPA 2010 (double taxation relief), even if no claim is in fact made.
(5)If section 809B, 809D or 809E of ITA 2007 (remittance basis) applies to the individual for the year of return, any distribution within subsection (3) that is relevant foreign income and is remitted to the United Kingdom in the temporary period of non-residence is to be treated as remitted to the United Kingdom in the period of return.
(6)In this section, “remitted to the United Kingdom” has the meaning given in Chapter A1 of Part 14 of ITA 2007.]
Textual Amendments
F1S. 689A inserted (with effect in accordance with Sch. 45 para. 153(3) of the amending Act) by Finance Act 2013 (c. 29), Sch. 45 para. 137