Finance (No. 2) Act 2017

ITA 2007

35 (1) Section 732 (when income is treated as arising for the purposes of the charge under section 731) is amended in accordance with sub-paragraphs (2) to (4).

(2) In subsection (1) (cases in which tax can be charged under section 731)—

(a) in paragraph (b), for “who is UK resident for a tax year receives a benefit in that tax year” substitute “receives a benefit in a tax year”, and

(b) for paragraph (d) substitute—

“(d) where there is a time in the year when the individual is relevantly domiciled, the individual is not liable to income tax under section 720 or 727 by reference to the transfer, and”.

(3) After subsection (3) insert—

“(4) For the purposes of subsection (1)(d), the individual is “relevantly domiciled” at any time if at that time—

(a) the individual is domiciled in the United Kingdom, or

(b) the individual is regarded for the purposes of section 718(1)(b) as domiciled in the United Kingdom as a result of section 835BA having effect because of Condition A in that section being met.”

(4) In the heading, for “Non-transferors” substitute “Individuals”.

(5) In section 733(1) (income charged under section 731), in the first sentence of Step 2, at the end insert “except that, where any of that income is matched deemed income for the purposes of section 731(1A), that matched deemed income is to be deducted only so far as it is matched deemed income on which tax has been charged under section 731 for an earlier tax year.