Law

Income Tax Act 2007

United Kingdom · statute

Ask the law about this More laws of United Kingdom For machines: Markdown

In force since 2026-09-16, as the publisher states.

Copy read on 2026-11-08. The page it was read from

Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.

sha256 d41039ee89d56e2a41b16dabe0aee6ff436159b5fde34d4e35e2f7241db1985c

Contents: 1,664 provisions

Proposed changes to this act

No one has proposed a change to this act yet.

1,664 provisions

690 Receipt of assets of relevant company (circumstance E)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Propose a change

691 Meaning of “relevant company” in sections 689 and 690

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Propose a change

692 Abnormal dividends: general

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Propose a change

693 Abnormal dividends: the excessive return condition

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Propose a change

694 Abnormal dividends: the excessive accrual condition

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Propose a change

695 Notice of enquiry

(1) An officer of Revenue and Customs may enquire into a transaction or transactions if— (a) the officer has reason to believe that section 684 (person liable to counteraction of income tax advantage) may apply to a person (“the taxpayer”) in respect of the transaction or transactions, and (b) the officer notifies the taxpayer of his intention to do so. (2) The notification may be given at any time not more than 6 years after the end of the tax year to which the income tax advantage in question relates.

Propose a change

696 Opposed notifications: statutory declarations

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Propose a change

697 Opposed notifications: determinations by tribunal

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Propose a change

698 Counteraction notices

(1) If on an enquiry under section 695 an officer of Revenue and Customs determines that section 684 applies to the taxpayer, the income tax advantage in question is to be counteracted by adjustments, unless the officer is of the opinion that no counteraction is required. (2) The adjustments required to be made to counteract the income tax advantage and the basis on which they are to be made are to be specified in a notice served on the person by an officer of Revenue and Customs. (3) In this Chapter such a notice is referred to as a “counteraction notice”. (4) Any of the following adjustments may be specified— (a) an assessment, (b) the nullifying of a right to repayment, (c) the requiring of the return of a repayment already made, or (d) the calculation or recalculation of profits or gains or liability to income tax. (5) An assessment may be made in accordance with a counteraction notice at any time (without regard to any time limit on making the assessment that would otherwise apply). (6) This section is subject to— ... section 700 (timing of assessments ...), and section 702(2) (effect of clearance notification under section 701). (7) But no other provision in the Income Tax Acts is to be read as limiting the powers conferred by this section.

Propose a change

698A No-counteraction notices

(1) If on an enquiry under section 695 an officer of Revenue and Customs is of the opinion that no counteraction is required, the officer must serve notice on the person (a “no-counteraction notice”) stating that no counteraction is required and why. (2) The taxpayer may apply to the tribunal for a direction requiring an officer of Revenue and Customs to issue one of the following within a specified period— (a) a counteraction notice; (b) a no-counteraction notice. (3) Any such application is to be subject to the relevant provisions of Part 5 of TMA 1970 (see, in particular, section 48(2)(b) of that Act). (4) The tribunal must give the direction applied for unless satisfied that there are reasonable grounds for not serving either a counteraction notice or a no-counteraction notice within a specified period.

Propose a change

699 Limit on amount assessed in section 689 and 690 cases

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Propose a change

700 Timing of assessments ...

(1) This section applies if section 684 (person liable to counteraction of income tax advantage) applies to a person because the person is in a position to obtain or has obtained an income tax advantage by falling within the circumstances mentioned in section 685(2)(c) or (3) when share capital is repaid. (2) An assessment to income tax made in accordance with a counteraction notice must be an assessment for the tax year in which the repayment occurs. (3) The references in this section to the repayment of share capital include references to any distribution made in respect of any shares in a winding up or dissolution of the company. (4) In subsection (3) “shares” includes stock and any other interest of a member in a company.

Propose a change

701 Application for clearance of transactions

(1) A person may provide the Commissioners for Her Majesty's Revenue and Customs with particulars of a transaction or transactions effected or to be effected by the person in order to obtain a notification about them under this section. (2) If the Commissioners consider that the particulars, or any further information provided under this subsection, are insufficient for the purposes of this section, they must notify the person what further information they require for those purposes within 30 days of receiving the particulars or further information. (3) If any such further information is not provided within 30 days from the notification, or such further time as the Commissioners allow, they need not proceed further under this section. (4) The Commissioners must notify the person whether they are satisfied that the transaction or transactions, as described in the particulars, were or will be such that no counteraction notice ought to be served about the transaction or transactions. (5) The notification must be given within 30 days of receipt of the particulars, or, if subsection (2) applies, of all further information required.

Propose a change

702 Effect of clearance notification under section 701

(1) This section applies if the Commissioners for Her Majesty's Revenue and Customs notify a person under section 701 that they are satisfied that a transaction or transactions, as described in the particulars provided under that section, were or will be such that no counteraction notice ought to be served about the transaction or transactions. (2) No such notice may be served on the person in respect of the transaction or transactions. (3) But the notification does not prevent such a notice being served on the person in respect of transactions including not only the ones to which the notification relates but also others. (4) The notification is void if the particulars and any further information given under section 701 about the transaction or transactions do not fully and accurately disclose all facts and considerations which are material for the purposes of that section.

Propose a change

703 Power to obtain information

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Propose a change

704 The tribunal

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Propose a change

705 Appeals against counteraction notices

(1) A person on whom a counteraction notice has been served may appeal ... on the grounds that— (a) section 684 (person liable to counteraction of income tax advantage) does not apply to the person in respect of the transaction or transactions in question, or (b) the adjustments directed to be made are inappropriate. (2) Such an appeal may be made only by giving notice to the Commissioners for Her Majesty's Revenue and Customs within 30 days of the service of the counteraction notice. (3) On an appeal under this section that is notified to the tribunal, the tribunal may— (a) affirm, vary or cancel the counteraction notice, or (b) affirm, vary or quash an assessment made in accordance with the notice. (4) But the bringing of an appeal under this section ... does not affect— (a) the validity of the counteraction notice, or (b) the validity of any other thing done under or in accordance with section 698 (counteraction notices), pending the determination of the proceedings.

Propose a change

712 Application of Chapter where individual within section 684 dies

(1) This section applies if an individual to whom section 684 (person liable to counteraction of income tax advantage) applies (or may apply) has died. (2) Any notice or notification to the individual under this Chapter may be given to the individual's personal representatives. (3) The provisions of this Chapter relating to any such notice or notification, to the making of a statutory declaration, to rights of appeal and to the giving of information must be read accordingly.

Propose a change

713 Interpretation of Chapter

(1) In this Chapter— “associate” is to be construed in accordance with section 681DL, but as if subsection (4) of that section also included, as persons associated with each other, a person as trustee of a settlement and an individual, where one or more beneficiaries of the settlement are connected or associated with the individual; “close company” includes a company that would be a close company if it were resident in the United Kingdom, “company” includes any body corporate, “dividends” includes references to other ... distributions and to interest, “securities”— includes shares and stock, and in relation to a company not limited by shares (whether or not it has a share capital) also includes a reference to the interest of a member of the company as such, whatever the form of that interest, “trading stock” has the meaning given by section 174 of ITTOIA 2005, and ... (2) In the definition of “dividends” given by subsection (1), “other distributions” does not include a distribution which is a distribution for the purposes of the Corporation Tax Acts only because it falls within paragraph C or D in section 1000(1) (redeemable share capital or security issued as bonus in respect of shares in, or securities of, the company).

Propose a change

714 Overview of Chapter

(1) This Chapter imposes a charge to income tax on— (a) individuals to whom income is treated as arising under section 721 (individuals with power to enjoy income as a result of relevant transactions), (b) individuals to whom income is treated as arising under section 728 (individuals receiving capital sums as a result of relevant transactions), and (c) individuals to whom income is treated as arising under section 732 (non-transferors receiving a benefit as a result of relevant transactions). (2) The charges apply only if a relevant transfer occurs, and they operate by reference to income of a person abroad that is connected with the transfer or another relevant transaction. (3) For the meaning of “relevant transaction”, “relevant transfer” and “person abroad”, see sections 715, 716 and 718 respectively. (4) In this Chapter references to individuals include their spouses or civil partners.

Propose a change

715 Meaning of “relevant transaction”

(1) A transaction is a relevant transaction for the purposes of this Chapter if it is— (a) a relevant transfer, or (b) an associated operation. (2) For the meaning of “relevant transfer” and “associated operation”, see sections 716 and 719 respectively.

Propose a change

716 Meaning of “relevant transfer” and “transfer”

(1) A transfer is a relevant transfer for the purposes of this Chapter if— (a) it is a transfer of assets, and (b) as a result of— (i) the transfer, (ii) one or more associated operations, or (iii) the transfer and one or more associated operations, income becomes payable to a person abroad. (2) In this Chapter “transfer”, in relation to rights, includes the creation of the rights. (3) For the meaning of “assets”, see section 717.

Propose a change

717 Meaning of “assets” etc

In this Chapter— (a) “assets” includes property or rights of any kind, and (b) references to assets representing any assets, income or accumulations of income include references to— (i) shares in or obligations of any company to which the assets, income or accumulations are or have been transferred, or (ii) obligations of any other person to whom the assets, income or accumulations are or have been transferred.

Propose a change

718 Meaning of “person abroad” etc

(1) In this Chapter “person abroad” means a person who is resident outside the United Kingdom. (2) For the purposes of this Chapter, the following persons are treated as resident outside the United Kingdom— (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (b) the person treated as non-UK resident under section 475(3) (trustees of settlements), and (c) persons treated as non-UK resident under section 834(4) (personal representatives). (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Propose a change

719 Meaning of “associated operation”

(1) In this Chapter “associated operation”, in relation to a transfer of assets, means an operation of any kind effected by any person in relation to— (a) any of the assets transferred, (b) any assets directly or indirectly representing any of the assets transferred, (c) the income arising from any assets within paragraph (a) or (b), or (d) any assets directly or indirectly representing the accumulations of income arising from any assets within paragraph (a) or (b). (2) It does not matter whether the operation is effected before, after or at the same time as the transfer.

Propose a change

719A Other definitions

In this Chapter— “closely-held company” means— a close company for the purposes of the Corporation Tax Acts (see Part 10 of CTA 2010), or a company that would be a close company if section 442(a) of CTA 2010 were ignored (non-UK resident company not to be treated as close); “nominee”, in relation to an individual, means a person— who possesses any rights or powers on behalf of the individual, or who may be required to exercise any rights or powers on the individual’s direction or behalf; “participator” is to be construed in accordance with section 454 of CTA 2010.

Propose a change

720 Charge to tax on income treated as arising under section 721

(1) The charge under this section applies for the purpose of preventing the avoiding of liability to income tax by individuals who are ... UK resident by means of relevant transfers. (2) Income tax is charged on income treated as arising to such an individual under section 721 (individuals with power to enjoy income as a result of relevant transactions). (3) Tax is charged under this section on the amount of income treated as arising in the tax year. (4) But see section 724 (special rules where benefit provided out of income of person abroad) .... (5) The person liable for any tax charged under this section is the individual to whom the income is treated as arising. (6) For rules about the reduction in the amount charged in some circumstances and the availability of deductions and reliefs, see— section 725 (reduction in amount charged where controlled foreign company involved), and section 746 (deductions and reliefs where individual charged under this section or section 727). (7) For exemptions from the charge under this section, see sections 736 to 742 (exemptions where no tax avoidance purpose or genuine commercial transaction etc).

Propose a change

720A Transfers by closely-held companies

(1) The charge under section 720 also applies for the purpose of preventing the avoiding of a liability to taxation by means of a relevant transfer carried out by a closely-held company in which an individual has a qualifying interest. (2) But the charge only applies in those circumstances if— (a) the individual is involved in the company, and (b) the avoidance condition is met. (3) An individual has a qualifying interest in a closely-held company if the individual, or a nominee of the individual, is a participator in— (a) the closely-held company, or (b) the first closely-held company in a chain of two or more closely-held companies where each company in the chain is a participator in the next company in the chain, of which one such company is the closely-held company that carried out the relevant transfer. (4) For the purposes of this section, an individual with a qualifying interest in a company is to be treated as being involved in the company unless the individual satisfies an officer of Revenue and Customs that neither the individual nor (in a case where the individual is not the relevant participator) the relevant participator has any direct or indirect involvement in the decision making of the company. (5) The avoidance condition is met if— (a) the relevant participator did not object to the making of the relevant transfer, and (b) it is reasonable to draw the conclusion, from all the circumstances of the case, that the relevant participator was aware, or ought reasonably to have been aware— (i) of the transfer, and (ii) that one of the direct or indirect consequences of the transfer is the avoidance of a liability to taxation. (6) For the purposes of subsections (4) and (5) the “relevant participator” means— (a) in a case where the individual’s qualifying interest arises as a result of a nominee of the individual being a participator in a company, the nominee, or (b) otherwise, the individual. (7) Any arrangements to secure that a person has no direct or indirect involvement in the decision making of a company are to be disregarded if the main purpose, or one of the main purposes, of the arrangements is to secure that the condition in subsection (2)(a) is not met. (8) Any arrangements that would result in the avoidance condition not being met are to be disregarded if the main purpose, or one of the main purposes, of the arrangements is to secure that the avoidance condition is not met. (9) In this section— “arrangements” include any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable); “taxation” has the meaning it has in section 737.

Propose a change

721 Individuals 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) or 720A(1) in a tax year for income tax purposes if conditions A to C 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 of the person abroad would be chargeable to income tax if it were the individual's and received by the individual in the United Kingdom. (3A) Condition C is that the individual is UK resident for the tax year. (3B) The amount of the income treated as arising under subsection (1) is equal to the amount of the income of the person abroad (subject to sections 724 and 725). (3C) Subsection (1) does not apply if— (a) the individual is liable for income tax charged on the income of the person abroad by virtue of a charge not contained in this Chapter, and (b) all that income tax has been paid. (4) For the purposes of subsection (2), it does not matter whether the income of the person abroad may be enjoyed immediately or only later. (5) It does not matter for the purposes of this section— (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (b) whether the individual is UK resident for the tax year in which the relevant transfer is made (if different from the tax year mentioned in subsection (1)), 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.

Propose a change

721A Meaning of “protected foreign-source income” in section 721

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Propose a change

721B Section 721A: tainting

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Propose a change

722 When an individual has power to enjoy income of person abroad

(1) For the purposes of section 721, an individual is treated as having power to enjoy income of a person abroad if any of the enjoyment conditions are met. (2) In subsection (1) “the enjoyment conditions” means conditions A to E as specified in section 723. (3) In determining whether an individual has power to enjoy income for the purposes of section 721, regard must be had to the substantial result and effect of all the relevant transactions. (4) In making that determination all benefits which may at any time accrue to the individual as a result of the transfer and any associated operations must be taken into account, irrespective of— (a) the nature or form of the benefits, or (b) whether the individual has legal or equitable rights in respect of the benefits.

Propose a change

723 The enjoyment conditions

(1) Condition A is that the income is in fact so dealt with by any person as to be calculated at some time to enure for the benefit of the individual, whether in the form of income or not. (2) Condition B is that the receipt or accrual of the income operates to increase the value to the individual— (a) of any assets the individual holds, or (b) of any assets held for the individual's benefit. (3) Condition C is that the individual receives or is entitled to receive at any time any benefit provided or to be provided out of the income or related money. (4) In subsection (3) “related money” means money which is or will be available for the purpose of providing the benefit as a result of the effect or successive effects— (a) on the income, and (b) on any assets which directly or indirectly represent the income, of the associated operations referred to in section 721(2). (5) Condition D is that the individual may become entitled to the beneficial enjoyment of the income if one or more powers are exercised or successively exercised. (6) For the purposes of subsection (5) it does not matter— (a) who may exercise the powers, or (b) whether they are exercisable with or without the consent of another person. (7) Condition E is that the individual is able in any manner to control directly or indirectly the application of the income.

Propose a change

724 Special rules where benefit provided out of income of person abroad

(1) This section applies if an individual has power to enjoy income of a person abroad for the purposes of section 721 because of receiving any such benefit as is referred to in section 723(3) (benefit provided out of income of person abroad). (2) Despite anything in section 720, the individual is liable to income tax under that section for the tax year in which the benefit is received on an amount equal to the whole of the amount or value of that benefit. (3) But subsection (2) does not apply so far as it is shown that the benefit derives directly or indirectly from income by reference to which the individual has already been charged to income tax for that tax year or a previous tax year under this Chapter.

Propose a change

725 Reduction in amount charged where controlled foreign company involved

(1) This section applies if— (a) under Part 9A of TIOPA 2010 (controlled foreign companies), the CFC charge is charged in relation to a CFC's accounting period, (b) an amount of income is treated as arising to an individual under section 721 for a tax year, and (c) the income mentioned in section 721(2) is or includes a sum forming part of the CFC's chargeable profits for that accounting period. (2) The amount of income so treated is reduced by— S × CA CP where— S is the sum forming part of the CFC's chargeable profits for that accounting period, CA is the CFC's chargeable profits for that accounting period so far as apportioned to chargeable companies at step 3 in section 371BC(1) of TIOPA 2010, and CP is the CFC's chargeable profits for that accounting period. (2A) In a case in which section 724 applies, the reference to S in the formula in subsection (2) is to be read as a reference to X% of S. (2B) “X%” is determined as follows— 100 % × A I where— A is the amount on which the individual is liable as determined under section 724(2), and I is the amount of the income mentioned in section 721(2). (3) Terms used in this section which are defined in Part 9A of TIOPA 2010 have the same meaning as in that Part.

Propose a change

725A Recovery of tax paid as a result of section 721

(1) Where any tax for which an individual is liable as a result of section 721 is paid, the individual is entitled to recover the amount of the tax from the person abroad. (2) For the purpose of recovering that amount, the individual is entitled to require an officer of Revenue and Customs to give the individual a certificate specifying— (a) the tax year in which income is treated under section 721 as arising to the individual, (b) the amount of income treated as arising, and (c) the amount of tax paid, and any such certificate is conclusive evidence of the facts stated in it.

Propose a change

726 Qualifying new residents and remittance-basis users: “foreign” deemed income

(1) Subsection (2) applies in relation to income treated under section 721 as arising to an individual (“the deemed income”)— (a) in the tax year 2024-25 or an earlier tax year if section 809B, 809D or 809E (remittance basis) applied to the individual for that tax year, or (b) in the tax year 2025-26 or a later tax year if the individual is entitled to claim relief under section 845A of ITTOIA 2005 (qualifying new residents) for that tax year. (2) For the purposes of this section the deemed income is “foreign” if (and to the corresponding extent that) the income mentioned in section 721(2) would be relevant foreign income if it were the individual's. (2A) Subsections (3) to (5) apply where the deemed income falls within subsection (1)(a). (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. (5) 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). (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (8) As to income falling within subsection (1)(b), see the table in section 845H of ITTOIA 2005 (under which deemed income that is foreign for the purposes of this section is “qualifying foreign income” and so may be identified in a foreign income claim).

Propose a change

727 Charge to tax on income treated as arising under section 728

(1) The charge under this section applies for the purpose of preventing the avoiding of liability to income tax by individuals who are ... UK resident by means of relevant transfers. (2) Income tax is charged on income treated as arising to such an individual under section 728 (individuals receiving capital sums as a result of relevant transactions). (3) Tax is charged under this section on the amount of income treated as arising in the tax year. (3A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4) The person liable for any tax charged under this section is the individual to whom the income is treated as arising. (5) For exemptions from the charge under this section, see sections 736 to 742 (exemptions where no tax avoidance purpose or genuine commercial transaction , etc). (6) For rules about the availability of deductions and reliefs where income is charged under this section, see section 746 (deductions and reliefs where individual charged under section 720 or this section).

Propose a change

727A Transfers by closely-held companies

(1) The charge under section 727 also applies for the purpose of preventing the avoiding of a liability to taxation by means of a relevant transfer carried out by a closely-held company in which an individual has a qualifying interest. (2) But the charge only applies in those circumstances if— (a) the individual is involved in the company, and (b) the avoidance condition is met. (3) An individual has a qualifying interest in a closely-held company if the individual, or a nominee of the individual, is a participator in— (a) the closely-held company, or (b) the first closely-held company in a chain of two or more closely-held companies where each company in the chain is a participator in the next company in the chain, of which one such company is the closely-held company that carried out the relevant transfer. (4) For the purposes of this section, an individual with a qualifying interest in a company is to be treated as being involved in the company unless the individual satisfies an officer of Revenue and Customs that neither the individual nor (in a case where the individual is not the relevant participator) the relevant participator has any direct or indirect involvement in the decision making of the company. (5) The avoidance condition is met if— (a) the relevant participator did not object to the making of the relevant transfer, and (b) it is reasonable to draw the conclusion, from all the circumstances of the case, that the relevant participator was aware, or ought reasonably to have been aware— (i) of the transfer, and (ii) that one of the direct or indirect consequences of the transfer is the avoidance of a liability to taxation. (6) For the purposes of subsections (4) and (5) the “relevant participator” means— (a) in a case where the individual’s qualifying interest arises as a result of a nominee of the individual being a participator in a company, the nominee, or (b) otherwise, the individual. (7) Any arrangements to secure that a person has no direct or indirect involvement in the decision making of a company are to be disregarded if the main purpose, or one of the main purposes, of the arrangements is to secure that the condition in subsection (2)(a) is not met. (8) Any arrangements that would result in the avoidance condition not being met are to be disregarded if the main purpose, or one of the main purposes, of the arrangements is to secure that the avoidance condition is not met. (9) In this section— “arrangements” include any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable); “taxation” has the meaning it has in section 737.

Propose a change

728 Individuals receiving capital sums as a result of relevant transactions

(1) Income is treated as arising to such an individual as is referred to in section 727(1) or 727A(1) in a tax year for income tax purposes if— (a) income has become the income of a person abroad as a result of— (i) a relevant transfer, (ii) one or more associated operations, or (iii) a relevant transfer and one or more associated operations, ... (b) the capital receipt conditions are met in respect of the individual in the tax year (see section 729) , and (c) the individual is UK resident for the tax year. (1A) The amount of the income treated as arising under subsection (1) is equal to the amount of the income of the person abroad (subject to subsection (2)). (2) Section 725 (reduction in amount charged where controlled foreign company involved) applies for determining the amount of income treated as arising under subsection (1) as if— (a) in subsection (1) of that section— (i) the reference to section 721 were a reference to this section, and (ii) the reference to section 721(2) were a reference to subsection (1)(a) of this section, and (b) subsections (2A) and (2B) of that section were omitted. (2A) Subsection (1) does not apply if— (a) the individual is liable for income tax charged on the income of the person abroad by virtue of a charge not contained in this Chapter, and (b) all that income tax has been paid. (3) It does not matter for the purposes of this section— (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (b) whether the individual is UK resident for the tax year in which the relevant transfer abroad is made (if different from the tax year mentioned in subsection (1)), or (c) whether the avoiding of liability to income tax is a purpose for which that transfer is effected.

Propose a change

← Find another law