Part 13

Tax avoidance
Chapter 2

Transfer of assets abroad

Charge where power to enjoy income

Individuals with power to enjoy income as a result of relevant transactions
721
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.