Part 13Tax avoidance

C2C1Chapter 2Transfer of assets abroad

Annotations:
Modifications etc. (not altering text)
C2

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)

C1

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

726F2Non-UK domiciled individuals to whom remittance basis applies

F41

This section applies in relation to income treated under section 721 as arising to an individual in a tax year (“the deemed income”) if section 809B, 809D or 809E (remittance basis) applies to the individual for that year.

2

For the purposes of this section the deemed income is “foreign” if (and to F1the corresponding extent that) the income mentioned in section 721(2) would be relevant foreign income if it were the individual's.

3

Treat the foreign deemed income as relevant foreign income of the individual.

4

For the purposes of Chapter A1 of Part 14 (remittance basis) treat so much of the income within section 721(2) as would be relevant foreign income if it were the individual's as deriving from the foreign deemed income.

F35

In the application of section 832 of ITTOIA 2005 to the foreign deemed income, subsection (2) of that section has effect with the omission of paragraph (b).

F56

In addition, where the tax year in which any foreign deemed income arises is earlier than the tax year 2017-18, section 832 of ITTOIA 2005 does not apply to the foreign deemed income so far as it—

a

is remitted to the United Kingdom in the tax year 2017-18 or a later tax year, and

b

is transitionally protected income.

7

In subsection (6)—

  • “remitted to the United Kingdom” is to be read in accordance with Chapter A1 of Part 14, and

  • “transitionally protected income” means any foreign deemed income where the income mentioned in section 721(2)—

    1. a

      arises in a tax year earlier than the tax year 2017-18,

    2. b

      would be protected foreign-source income as defined by section 721A if section 721A—

      1. i

        had effect for tax years earlier than the tax year 2017-18, and

      2. ii

        so had effect with the omission of its subsections (3)(e), (4)(g), (5) and (6), and

    3. c

      has not prior to 6 April 2017 been distributed by the trustees of the settlement concerned.