Part 13Tax avoidance
C1C2Chapter 2Transfer of assets abroad
Pt. 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 power to enjoy income
721Individuals with power to enjoy income as a result of relevant transactions
1
Income is treated as arising to such an individual as is mentioned in section 720(1) in a tax year for income tax purposes if conditions A and B are met.
2
Condition A is that the individual has power in the tax year to enjoy income of a person abroad as a result of—
a
a relevant transfer,
b
one or more associated operations, or
c
a relevant transfer and one or more associated operations.
3
Condition B is that the income would be chargeable to income tax if it were the individual's and received by the individual in the United Kingdom.
4
For the purposes of subsection (2), it does not matter whether the income may be enjoyed immediately or only later.
5
It does not matter for the purposes of this section—
a
whether the income would be chargeable to income tax apart from section 720,
b
whether the individual is ordinarily UK resident at the time when the relevant transfer is made, or
c
whether the avoiding of liability to income tax is a purpose for which the transfer is effected.
6
For the circumstances in which an individual is treated as having the power to enjoy income for the purposes of this section, see section 722.
Pt. 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)