Finance Act 2008

101 (1) This paragraph applies if— U.K.

(a) the trustees of a settlement have made an election under paragraph 126(1) (re-basing election),

(b) income is treated under [F1 regulation 17 of the Offshore Funds (Tax) Regulations 2009 (S.I. 2009/3001)] as arising to an individual in the tax year 2008-09 or any subsequent tax year (“the relevant tax year”) by reason of the matching, under section 87A of TCGA 1992 as applied by [F2 regulation 20 of those Regulations], of an OIG amount with a capital payment received by the individual from the trustees, and

(c) the individual is resident or ordinarily resident, but not domiciled, in the United Kingdom in the relevant tax year.

(2) The individual is not charged to income tax on so much of the income as exceeds the relevant proportion of that income.

(3) Sub-paragraphs (9) to (18) of paragraph 126 (meaning of “the relevant proportion”) apply for the purposes of sub-paragraph (2) above as if—

(a) references to section 2(2) amounts were to OIG amounts,

(b) references to chargeable gains were to offshore income gains,

(c) references to allowable losses were omitted, and

(d) references to anything accruing were to it arising (and similar references were read accordingly).

Textual Amendments

F1 Words in Sch. 7 para. 101(1)(b) substituted (with effect in accordance with reg. 1(2)(3), Sch. 1 of the amending S.I.) by The Offshore Funds (Tax) Regulations 2009 (S.I. 2009/3001), regs. 1(1), 130(3)(a)

F2 Words in Sch. 7 para. 101(1)(b) substituted (with effect in accordance with reg. 1(2)(3), Sch. 1 of the amending S.I.) by The Offshore Funds (Tax) Regulations 2009 (S.I. 2009/3001), regs. 1(1), 130(3)(b)