809EZDA Sums arising to connected persons other than companies
(1) This section applies in relation to an individual (“A”) if—
(a) a sum arises to a person (“B”) who is connected with A,
(b) B is not a company,
(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(e) the sum does not arise to A apart from this section.
(2) The sum referred to in subsection (1)(a) arises to A for the purposes of this Chapter.
(3) Where a sum arises to A by virtue of this section, it arises to A at the time the sum referred to in subsection (1)(a) arises to B.
(4) Section 993 (meaning of “connected”) applies for the purposes of this section, but as if—
(a) subsection (4) of that section were omitted, and
(b) partners in a partnership in which A is also a partner were not “associates” of A for the purposes of sections 450 and 451 of CTA 2010 (“control”).
809EZDB Sums arising to connected company or unconnected person
(1) This section applies in relation to an individual (“A”) if—
(a) a sum arises to—
(i) a company connected with A, or
(ii) a person not connected with A,
(b) any of the enjoyment conditions are met, and
(c) the sum does not arise to A apart from this section.
(2) The enjoyment conditions are—
(a) the sum, or part of the sum, is in fact so dealt with by any person as to be calculated at some time to enure for the benefit of A or a person connected with A;
(b) the arising of the sum operates to increase the value to A or a person connected with A of any assets which—
(i) A or the connected person holds, or
(ii) are held for the benefit of A or the connected person;
(c) A or a person connected with A receives or is entitled to receive at any time any benefit provided or to be provided out of the sum or part of the sum;
(d) A or a person connected with A may become entitled to the beneficial enjoyment of the sum or part of the sum if one or more powers are exercised or successively exercised (and for these purposes it does not matter who may exercise the powers or whether they are exercisable with or without the consent of another person);
(e) A or a person connected with A is able in any manner to control directly or indirectly the application of the sum or part of the sum.
In this subsection, in a case where the sum referred to in subsection (1)(a) arises to a company connected with A, references to a person connected with A do not include that company.
(3) There arises to A for the purposes of this Chapter—
(a) the sum referred to in subsection (1)(a), or
(b) if the enjoyment condition in subsection (2)(a), (c), (d) or (e) is met in relation to part of the sum, that part of that sum, or
(c) if the enjoyment condition in subsection (2)(b) is met, such part of that sum as is equal to the amount by which the value of the assets referred to in that condition is increased.
(4) Where a sum (or part of a sum) arises to A by virtue of this section, it arises to A at the time it arises to the person referred to in subsection (1)(a)(i) or (ii) (whether the enjoyment condition was met at that time or at a later date).
(5) In determining whether any of the enjoyment conditions are met in relation to a sum or part of a sum—
(a) regard must be had to the substantial result and effect of all the relevant circumstances, and
(b) all benefits which may at any time accrue to a person as a result of the sum arising as specified in subsection (1)(a) must be taken into account, irrespective of—
(i) the nature or form of the benefits, or
(ii) whether the person has legal or equitable rights in respect of the benefits.
(6) The enjoyment condition in subsection (2)(b), (c) or (d) is to be treated as not met if it would be met only by reason of A or a person connected with A holding shares or an interest in shares in a company.
(7) The enjoyment condition in subsection (2)(a) or (e) is to be treated as not met if the sum referred to in subsection (1)(a) arises to a company ... and—
(a) the company is liable to pay corporation tax in respect of its profits and the sum is included in the computation of those profits, or
(b) paragraph (a) does not apply but—
(i) the company is a CFC and the exemption in Chapter 14 of Part 9A of TIOPA 2010 applies for the accounting period in which the sum arises, or
(ii) the company is not a CFC but, if it were, that exemption would apply for that period.
In this subsection “CFC” has the same meaning as in Part 9A of TIOPA 2010.
(8) But subsections (6) and (7) do not apply if the sum referred to in subsection (1)(a) arises to the company referred to in subsection (1)(a)(i) or the person referred to in subsection (1)(a)(ii) as part of arrangements where—
(a) it is reasonable to assume that in the absence of the arrangements the sum or part of the sum would have arisen to A or an individual connected with A, and
(b) it is reasonable to assume that the arrangements have as their main purpose, or one of their main purposes, the avoidance of a liability to pay income tax, capital gains tax, inheritance tax or corporation tax.
(9) The condition in subsection (8)(b) is to be regarded as met in a case where —
(a) the sum arose from an investment scheme,
(b) the sum is applied directly or indirectly as an investment in an investment scheme, and
(c) the persons providing investment management services to the schemes mentioned in paragraphs (a) and (b) are the same or substantially the same.
(10) Section 993 (meaning of “connected”) applies for the purposes of this section, but as if—
(a) subsection (4) of that section were omitted, and
(b) partners in a partnership in which A is also a partner were not “associates” of A for the purposes of sections 450 and 451 of CTA 2010 (“control”).
(1) In this Chapter—
“arrangements” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable);
“collective investment scheme” has the meaning given by section 235 of FISMA 2000;
“external investor”, in relation to an investment scheme and any arrangements, means a participant in the scheme other than—
an individual who at any time performs or is to perform investment management services directly or indirectly in respect of the scheme, or
a person through whom sums are to, or may, arise directly or indirectly to such an individual from the scheme under the arrangements;
“investment management services”, in relation to an investment scheme, includes—
the provision of investment advice,
seeking funds for the purposes of the scheme from participants or potential participants,
researching potential investments to be made for the purposes of the scheme,
acquiring, managing or disposing of property for the purposes of the scheme, ...
acting for the purposes of the scheme with a view to assisting a body in which the scheme has made an investment to raise funds , and
any activity incidental or ancillary to any activity mentioned in paragraphs (za) to (d);
“investment trust” means a company in relation to which conditions A to C in section 1158 of CTA 2010 are met (or treated as met); and for this purpose “company” has the meaning given by section 1121 of CTA 2010;
“market value” has the same meaning as in TCGA 1992 (see sections 272 and 273 of that Act);
“participant”—
in relation to a collective investment scheme, is construed in accordance with section 235 of FISMA 2000;
in relation to an investment trust, means a member of the investment trust;
“profits”, in relation to an investment made for the purposes of an investment scheme, means profits (including unrealised profits) arising from the acquisition, holding, management or disposal of the investment (taking into account items of a revenue nature and items of a capital nature).
(2) In this Chapter a reference to an investment made by a person in an investment scheme is a reference to a contribution by the person (whether by way of capital, loan or otherwise) towards the property subject to the scheme (but does not include a sum committed but not yet invested).
(3) For the purposes of subsection (2) a person who holds a direct or indirect interest in an investment scheme and who acquired the interest from a person other than the scheme is to be taken to have made a contribution towards the property subject to the scheme equal to—
(a) the consideration given by the person for the acquisition of the interest, or
(b) if less, the market value of the interest at the time of the acquisition.
(4) In this Chapter, in relation to an investment scheme which is a company limited by shares—
(a) references to a repayment of, or a return on, an investment in the scheme include a repayment of, or a return on, an investment represented by a share in the scheme resulting from—
(i) the purchase of the share by the scheme,
(ii) the redemption of the share by the scheme,
(iii) the distribution of assets in respect of the share on the winding up of the scheme, or
(iv) any similar process;
(b) references to a return on an investment in the scheme include a dividend or similar distribution in respect of a share in the scheme representing the investment.
In determining whether section 809EZA applies in relation to an individual, no regard is to be had to any arrangements the main purpose, or one of the main purposes, of which is to secure that that section does not apply in relation to—
(a) the individual, or
(b) the individual and one or more other individuals.
809EZG Disguised investment management fees: avoidance of double taxation
(1) This section applies where—
(a) income tax is charged on an individual by virtue of section 809EZA in respect of a disguised fee, and
(b) at any time, a tax (whether income tax or another tax) is charged on the individual or another person otherwise than by virtue of section 809EZA in relation to the disguised fee.
(2) This section also applies where—
(a) income tax is charged on an individual by virtue of section 809EZA in respect of a disguised fee which arises to the individual under the arrangements by way of a loan or advance,
(b) at any time, a tax (whether income tax or another tax) is charged on the individual in relation to another sum which arises to the individual under the arrangements, and
(c) some or all of the loan or advance has to be repaid as a result of the other sum having arisen to the individual.
(3) In order to avoid a double charge to tax, the individual may make a claim for one or more consequential adjustments to be made in respect of the tax charged as mentioned in subsection (1)(b) or (2)(b).
(4) On a claim under this section an officer of Revenue and Customs must make such of the consequential adjustments claimed (if any) as are just and reasonable.
(5) The value of any consequential adjustments must not exceed the lesser of the income tax charged on the individual as mentioned in subsection (1)(a) or (2)(a) and—
(a) where subsection (1) applies, the tax charged as mentioned in subsection (1)(b);
(b) where subsection (2) applies, the tax charged as mentioned in subsection (2)(b) in relation to so much of the other sum as does not exceed the amount of the loan or advance that has to be repaid as mentioned in subsection (2)(c).
(6) Consequential adjustments may be made—
(a) in respect of any period,
(b) by way of an assessment, the modification of an assessment, the amendment of a claim, or otherwise, and
(c) despite any time limit imposed by or under any enactment.
(1) The Treasury may by regulations amend this Chapter—
(a) so as to change the definition of “investment scheme” for the purposes of this Chapter;
(b) so as to change the definition of “participant” for those purposes;
(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2) Regulations under this section may—
(a) make different provision for different purposes, and
(b) contain incidental, supplemental, consequential and transitional provision and savings.
(3) A statutory instrument containing regulations under this section to which subsection (4) applies may not be made unless a draft of the instrument has been laid before and approved by a resolution of the House of Commons.
(4) This subsection applies if the regulations contain any provision which has or may have the effect of increasing any person's liability to tax.
(5) Any other statutory instrument containing regulations under this section is subject to annulment in pursuance of a resolution of the House of Commons.
809ZA Plant and machinery leases: capital receipts to be treated as income
(1) This section applies if—
(a) there is an unconditional obligation, under a lease of plant or machinery or a relevant arrangement, to make a relevant capital payment (at any time), or
(b) a relevant capital payment is made under such a lease or arrangement otherwise than in pursuance of such an obligation.
(2) The lessor is treated for income tax purposes as receiving income attributable to the lease of an amount equal to the amount of the capital payment.
(3) If subsection (1)(a) applies, the income is treated as income for the period of account in which there is first an obligation of the kind mentioned there.
(4) If subsection (1)(b) applies, the income is treated as income for the period of account in which the capital payment is made.
(5) For the meaning of “capital payment” and “relevant capital payment”, see section 809ZE.
(6) For the meaning of other expressions used in this section or section 809ZC, 809ZD or 809ZE, see section 809ZF.
809ZC Section 809ZA: lease of plant and machinery and other property
(1) This section applies if section 809ZA applies in relation to a lease of plant or machinery and other property (see section 809ZF(3)).
(2) The relevant capital payment is to be apportioned, on a just and reasonable basis, between—
(a) the plant and machinery, and
(b) the other property.
(3) If the income (if any) received by the lessor that is attributable to any of the plant or machinery is chargeable to tax under Part 3 of ITTOIA 2005 (property income), treat that plant or machinery as falling within subsection (2)(b) (and not subsection (2)(a)).
(4) Section 809ZA(2) has effect as if the reference to the amount of the capital payment were to such amount as is apportioned under subsection (2) in respect of the plant or machinery within subsection (2)(a).
809ZD Section 809ZA: expectation that relevant capital payment will not be paid
(1) This section applies for income tax purposes if—
(a) section 809ZA applies by virtue of subsection (1)(a) of that section, and
(b) at any time, the lessor reasonably expects that the relevant capital payment will not be paid (or will not be paid in full).
(2) For the purposes of calculating the profits of the lessor, a deduction is allowed for the period of account which includes that time.
(3) The amount of the deduction is equal to the amount reasonably expected not to be paid.
(4) No other deduction is allowed in respect of the matters mentioned in subsection (1).
809ZE Capital payment”, “relevant capital payment” etc
(1) This section gives the meaning of “capital payment”, “relevant capital payment” and references to payment for the purposes of sections 809ZA to 809ZD and this section.
(2) “Capital payment” means any payment except one which, if made to the lessor—
(a) would fall to be included in a calculation of the lessor's income for income tax purposes, or
(b) would so fall but for section 148A of ITTOIA 2005 (rental earnings under long funding finance lease).
(3) A capital payment, in relation to a lease or relevant arrangement, is “relevant” if condition A or B is met (but this is subject to subsections (6) and (7)).
(4) Condition A is that the capital payment is payable (or paid), directly or indirectly, by or on behalf of the lessee to the lessor or another person on the lessor's behalf in connection with—
(a) the grant, assignment, novation or termination of the lease, or
(b) any provision of the lease or relevant arrangement (including the variation or waiver of any such provision).
(5) Condition B is that rentals payable under the lease are less than, or payable later than, they might reasonably be expected to be if there were no obligation to make the capital payment and it were not made.
(6) A capital payment is not “relevant” so far as it—
(a) reduces the amount of expenditure incurred by the lessor for the purposes of CAA 2001 in respect of the plant or machinery in question or would reduce it but for section 536 of that Act (contributions not made by public bodies and not eligible for tax relief), or
(b) is compensation for loss resulting from damage to, or damage caused by, the plant or machinery in question.
(7) If—
(a) a capital payment is an initial payment under a long funding lease for the purposes of Part 2 of CAA 2001 (see section 70YI of that Act), and
(b) under section 61 of that Act (disposal events and disposal values) the commencement of the term of the lease (as defined in section 70YI of that Act) is an event that requires the lessor to bring a disposal value into account,
the capital payment is only “relevant” so far as it exceeds the amount that is the disposal value for the purposes of Part 2 of that Act.
(8) References to payment include the provision of value by any means other than the making of a payment.
(9) Accordingly—
(a) references to the making of a payment include the passing of value by any other means, and
(b) references to the amount of the payment include the value passed.
(1) This section applies for the purposes of sections 809ZA to 809ZE and this section.
(2) “Lease” includes—
(a) a licence, and
(b) the letting of a ship or aircraft on charter or the letting of any other asset on hire,
and “lessor” and “lessee” must be read accordingly.
(3) “Lease of plant or machinery” includes a lease of plant or machinery and other property, but does not include a lease to which subsection (4) or (5) applies.
(4) This subsection applies to a lease if any income attributable to it and received by the lessor would be chargeable to tax under Part 3 of ITTOIA 2005 (property income).
(5) This subsection applies to a lease of plant or machinery if the lessor has incurred on the plant or machinery what would be qualifying expenditure within the meaning of Part 2 of CAA 2001 but for section 34A of that Act (expenditure on plant or machinery for long funding leasing not qualifying expenditure).
(6) “Relevant arrangement” means any agreement or arrangement relating to a lease of plant or machinery, including one made before the lease is entered into or after it has ended.
(7) Accordingly, “lessor” and “lessee” include prospective and former lessors and lessees.
809ZFA Consideration for taking over payment obligations as lessee treated as income
(1) This section applies where under any arrangements—
(a) a person within the charge to income tax (P) agrees to take over obligations of another person (Q) as lessee under a lease of plant or machinery,
(b) as a result of that agreement P, or a person connected with P, becomes entitled to income deductions (whether deductions in calculating income or from total profits), and
(c) a payment is payable to P, or a person connected with P, by way of consideration for that agreement.
(2) The payment is treated for the purposes of income tax as income received by P in the tax year in which P takes over the obligations mentioned in subsection (1)(a).
(3) Subsection (2) does not apply if and to the extent that the consideration is (apart from this section)—
(a) charged to tax on P, or a person connected with P, as an amount of income,
(b) brought into account in calculating for tax purposes any income of P or a person connected with P, or
(c) brought into account for the purposes of any provision of CAA 2001 as a disposal receipt, or proceeds from a balancing event or disposal event, of P or a person connected with P.
(4) It does not matter how P takes over the obligations of Q (whether by assignment, novation, variation or replacement of the contract, by operation of law or otherwise).
(5) In this section—
“arrangements” include any scheme, arrangement, understanding, transaction or series of transactions (whether or not legally enforceable);
“lease of plant or machinery” means any kind of agreement or arrangement under which sums are paid for the use of, or otherwise in respect of, plant or machinery;
“payment” includes the provision of any benefit, the assumption of any liability or the transfer of money or money's worth (and “payable” is to be construed accordingly),;
“payment by way of consideration” includes a payment made, directly or indirectly, in consequence of or otherwise in connection with, the agreement mentioned in subsection (1)(a), where it is reasonable to assume the agreement would not have been made unless the arrangements included provision for the payment.
(6) Any priority rule (other than section 212(1) of FA 2013 (general anti-abuse rule to have priority over other rules)) has effect subject to this section, despite the terms of the priority rule.
(7) For that purpose “priority rule” is a rule (however expressed) to the effect that particular provisions have effect to the exclusion of, or otherwise in priority to, anything else.
(8) An example of a priority rule is section 6(1) of TIOPA 2010 (effect to be given to double taxation arrangements despite anything in any enactment).
(1) Relief is not to be given under any provision of the Income Tax Acts to a person in respect of a payment of interest if a tax relief scheme has been effected, or tax relief arrangements have been made, in relation to the transaction under which the interest is paid.
(2) Subsection (1) applies whether the tax relief scheme is effected, or the tax relief arrangements are made, before or after the transaction.
(3) A scheme is a tax relief scheme in relation to a transaction for the purposes of subsection (1) if it is such that the sole or main benefit that might be expected to accrue to the person from the transaction is the obtaining of a reduction in tax liability by means of relief under the Income Tax Acts.
(4) Arrangements are tax relief arrangements in relation to a transaction for the purposes of subsection (1) if they are such that the sole or main benefit that might be expected to accrue to the person from the transaction is the obtaining of a reduction in tax liability by means of relief under the Income Tax Acts.
(5) In this section “relief” means relief by way of—
(a) deduction in calculating profits or gains, or
(b) deduction or set off against income.
(1) This Chapter makes provision for removing entitlement to income tax reliefs, and counteracting income tax advantages, where a person makes a relievable charity donation which is a tainted donation.
(2) See sections 257A and 257B of TCGA 1992 and Part 21C of CTA 2010 for the removal of entitlement to other reliefs where a person makes a relievable charity donation which is a tainted donation.
(1) In this Chapter “relievable charity donation” means a gift or other disposal which—
(a) is made by a person to a charity, and
(b) is eligible for tax relief.
(2) A gift or other disposal is eligible for tax relief if one or both of the following apply—
(a) (ignoring the tainted donation provisions) tax relief would be available in respect of it under a relevant relieving provision;
(b) the charity is entitled to claim a repayment of tax in respect of it.
(3) “The tainted donation provisions” are—
(a) this Chapter,
(b) sections 257A and 257B of TCGA 1992 (tainted charity donations: disapplication of section 257), and
(c) Part 21C of CTA 2010 (tainted charity donations: removal of corporation tax reliefs).
(4) The following are “relevant relieving provisions”—
(a) section 257 of TCGA 1992 (gifts of chargeable assets),
(b) section 63(2)(a), (aa) and (ab) of CAA 2001 (gifts of plant and machinery),
(c) Part 12 of ITEPA 2003 (payroll giving),
(d) section 108 of ITTOIA 2005 (gifts of trading stock),
(e) Chapters 2 and 3 of Part 8 of this Act (gift aid and gifts of shares),
(f) section 105 of CTA 2009 (gifts of trading stock), and
(g) Part 6 of CTA 2010 (charitable donations relief).
(5) For the purposes of this Chapter, an amount of income which arises under a UK settlement and to which a charity is entitled under the terms of the settlement is to be regarded as an amount gifted to the charity by the trustees of the settlement.
“UK settlement” has the same meaning as in section 628 of ITTOIA 2005.
(1) For the purposes of this Chapter, a relievable charity donation
(a) is a tainted donation if (and only if) Conditions A, B and C are met , and
(b) becomes a tainted donation at the earliest time when all those conditions are met.
(2) Condition A is that—
(a) a linked person enters into arrangements (whether before or after the donation is made), and
(b) it is reasonable to assume from either or both of—
(i) the likely effects of the donation and the arrangements as at the later of the time when the donation is made and the time when the arrangements are entered into, and
(ii) the circumstances in which the donation is made and the circumstances in which the arrangements are entered into,
that the donation would not have been made and the arrangements would not have been entered into independently of one another.
(3) “Linked person” means—
(a) the person who made the donation (“the donor”), or
(b) a person connected with the donor at a relevant time.
(4) In subsection (3) “relevant time” means any time after the earliest of the following times—
(a) the time when the arrangements are entered into as mentioned in subsection (2);
(b) the time when the relievable charity donation is made;
(c) the time when the arrangements are first materially implemented.
(5) Condition B is that a linked person who is not a charity receives financial assistance—
(a) under or in connection with the arrangements, and
(b) directly or indirectly from the charity to which the donation is made or from a connected charity.
(6) Condition C is that the donor is not—
(a) a qualifying charity-owned company, or
(b) a relevant housing provider linked with the charity to which the donation is made.
(7) For the purposes of subsection (6)(b) a relevant housing provider is linked with the charity if (and only if)—
(a) one is wholly owned, or subject to control, by the other, or
(b) both are wholly owned, or subject to control, by the same person.
(8) In this section—
“financial assistance” includes a loan, a guarantee, an indemnity or any form of investment (in each case, whether or not on arm’s length terms);
“qualifying charity-owned company”, in relation to a relievable charity donation, means a company which—
is wholly owned by one or more charities, at least one of which is the charity to which the donation is made or a connected charity, and
has not previously been under the control of, and does not carry on a trade or business previously carried on by, one or more of the following—
a linked person;
a person (other than a charity) who, at any time within the period of 4 years ending with the day on which paragraph (a) was first satisfied, was connected with a person who is a linked person;
“relevant housing provider” means a body which is—
a non-profit registered provider of social housing, or
entered on a register maintained under section 1 of the Housing Act 1996, section 20 of the Housing (Scotland) Act 2010 (asp 17) or Article 14 of the Housing (Northern Ireland) Order 1992 (S.I. 1992/1725 (N.I. 15)).
(9) Section 200 of CTA 2010 (company wholly owned by a charity) applies for the purposes of subsection (8), and for those purposes references in that section to “charity” include a registered club within the meaning of section 658(6) of that Act.
(10) This section is subject to section 809ZL (certain financial assistance to be ignored).
(1) When determining whether a relievable charity donation is a tainted donation, financial assistance within subsection (2A), (3), (4) or (5) is to be ignored.
(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2A) Financial assistance is within this subsection if it constitutes a payment made by a charity, on arm’s length terms, in respect of—
(a) work carried out by a person for or on behalf of the charity, or
(b) expenses incurred by a person in the course of such work.
(3) Financial assistance is within this subsection if (ignoring the tainted donation provisions) it is—
(a) a benefit associated with a gift which is a qualifying donation for the purposes of Chapter 2 of Part 8 (gift aid), or
(b) a benefit associated with a payment which is a qualifying payment for the purposes of Chapter 2 of Part 6 of CTA 2010 (charitable donations relief: payments to charity).
(4) Financial assistance is within this subsection if (ignoring the tainted donation provisions)—
(a) the relievable charity donation is a disposal in respect of which tax relief would be available under Chapter 3 of Part 8 of this Act (gifts of shares, securities and real property to charities etc) or Chapter 3 of Part 6 of CTA 2010 (charitable donations: certain disposals to charity), and
(b) the assistance is a benefit the value of which would be taken into account in determining the relievable amount in respect of the disposal for the purposes of the Chapter in question.
(5) Financial assistance is within this subsection if (ignoring the tainted donation provisions)—
(a) the relievable charity donation is a gift in respect of which tax relief would be available under section 108 of ITTOIA 2005 or section 105 of CTA 2009 (gifts of trading stock to charities etc), and
(b) the assistance is a benefit attributable to the making of the gift in respect of which an amount would be brought into account under section 109 of ITTOIA 2005 or section 108 of CTA 2009 (receipt of benefits by donor or connected person).
(6) In this section—
“benefit associated with a gift” has the meaning given by section 417;
“benefit associated with a payment” has the meaning given by section 196 of CTA 2010;
“financial assistance” has the same meaning as in section 809ZJ;
“the tainted donation provisions” has the meaning given by section 809ZI(3).
809ZM Removal of income tax relief where donation becomes tainted in same tax year
(1) This section applies where—
(a) a person makes a relievable charity donation, and
(b) the donation becomes a tainted donation in the same tax year in which it is made.
(2) Where (ignoring this Chapter) income tax relief would be available in respect of the tainted donation, that relief is not available.
(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4) In this section—
...
“income tax relief” means relief under—
section 63(2)(a), (aa) or (ab) of CAA 2001 (gifts of plant and machinery), so far as it applies in relation to income tax,
Part 12 of ITEPA 2003 (payroll giving),
section 108 of ITTOIA 2005 (gifts of trading stock),
Chapter 2 of Part 8 of this Act (gift aid), or
Chapter 3 of that Part (gifts of shares etc);
...
...
...
(5) Where entitlement to relief is withdrawn under this section in respect of a donation—
(a) subsections (6) and (7) apply if the relief is under Chapter 2 of Part 8 (gift aid), and
(b) subsection (8) applies if the relief is under Part 12 of ITEPA 2003 (payroll giving).
(6) For the purposes of Step 2 in section 58(1), the donation is not a qualifying donation for the purposes of Chapter 2 of Part 8.
(7) But—
(a) the donation remains a qualifying donation for the purposes of—
(i) Part 10 (special rules about charitable trusts etc),
(ii) section 899(5) (meaning of “qualifying annual payment”),
(iii) Chapter 2 of Part 11 of CTA 2010 (charitable companies: gifts and other payments),
(iv) section 664 of that Act (community amateur sports clubs: exemption for interest and gift aid income), and
(b) accordingly, section 414(2)(a) (donation treated as made after deduction of basic rate income tax) applies for the purposes of section 520(4) (income tax treated as deducted to be treated as income tax paid by charitable trust).
(8) The donation remains a donation for the purposes of Part 12 of ITEPA 2003 for the purposes of—
(a) section 521A (gifts under payroll deduction scheme: income tax liability and exemption), and
(b) section 472A of CTA 2010 (gifts under payroll reduction scheme: corporation tax liability and exemption).
809ZMA Clawback of income tax relief where donation becomes tainted in later tax year
(1) This section applies where—
(a) a person makes a relievable charity donation in a tax year (“the donation year”),
(b) the donation becomes a tainted donation in a later tax year (“the tainting year”), and
(c) if the donation had become a tainted donation in the donation year, the person’s liability to income tax for the donation year would have been greater than it in fact was for that year.
(2) Income tax is charged under this section, for the tainting year, of an amount equal to the difference between—
(a) the amount of income tax for which the person who made the donation would have been liable for the donation year had the donation become a tainted donation in that year, and
(b) the amount of income tax for which that person was in fact liable for the donation year.
(3) The person liable for tax charged under this section is the person who made the donation.
(4) Section 101 of FA 2009 (late payment interest) has effect in relation to tax charged under this section as though the tax had become due and payable on 1 February in the tax year following the donation year.
809ZMB Removal or clawback of income tax relief for associated donations
(1) This section applies where—
(a) a person makes a relievable charity donation that becomes a tainted donation, and
(b) a person makes an associated donation in relation to the tainted donation.
(2) If the donation mentioned in subsection (1)(a) becomes a tainted donation before the end of the tax year in which the associated donation is made, any income tax relief that would otherwise be available in respect of the associated donation is not available.
(3) Section 809ZM(5) to (8) (treatment of donation where entitlement to relief is withdrawn) applies to the withdrawal of relief under subsection (2) as it applies to the withdrawal of relief under that section.
(4) Subsection (5) applies where—
(a) the donation mentioned in subsection (1)(a) becomes a tainted donation after the end of the tax year in which the associated donation is made, and
(b) if the donation mentioned in subsection (1)(a) had become a tainted donation before the end of that tax year, the liability to income tax for that tax year of the person who made the associated donation would have been greater than it in fact was for that tax year.
(5) Income tax is charged under this section, for the tax year in which the donation mentioned in subsection (1)(a) becomes a tainted donation, of an amount equal to the difference between—
(a) the amount of income tax for which the person who made the associated donation would have been liable for the tax year in which the associated donation was made had the tainted donation become a tainted donation before the end of that tax year, and
(b) the amount of income tax for which that person was in fact liable for the tax year in which the associated donation was made.
(6) The person liable for tax charged under subsection (5) is the person who made the associated donation.
(7) Subsection (5) does not apply in relation to an associated donation if the person who would be liable for tax charged under that subsection—
(a) is already liable for tax charged under that subsection by reference to the tax year in which the associated donation was made, or
(b) is liable for tax charged under section 809ZMA(2) by reference to that tax year,
and for that purpose the tax year “by reference to which” tax is charged is the earlier tax year for which the person’s liability falls to be considered under (as the case may be) subsection (5)(a) and (b) or section 809ZMA(2)(a) and (b).
(8) Section 101 of FA 2009 (late payment interest) has effect in relation to tax charged under subsection (5) as though the tax had become due and payable on 1 February in the tax year following the one in which the associated donation was made.
(9) In this section—
“associated donation”, in relation to a tainted donation, means a relievable charity donation made—
in accordance with the arrangements by reference to which Conditions A and B in section 809ZJ are met, and
by a person other than—
a qualifying charity-owned company in relation to that relievable charity donation, or
a relevant housing provider linked (within the meaning of section 809ZJ(7)) with the charity to which that donation is made;
“income tax relief” has the same meaning as in section 809ZM;
“qualifying charity-owned company” has the meaning given by section 809ZJ(8) (except that paragraph (b) of that definition does not apply);
“relevant housing provider” has the meaning given by section 809ZJ(8).
809ZN Income tax charge where gift aid is withdrawn
(1) Income tax is charged under this section if—
(a) a person makes a relievable charity donation in a tax year,
(aa) the donation becomes a tainted donation (whether in that tax year or a later tax year),
(b) (ignoring this Chapter) relief would have been available under Chapter 2 of Part 8 in respect of the tainted donation or an associated donation (“the gift aid donation”), and
(c) the charity to which the gift aid donation is made is entitled to claim a repayment of tax in respect of that donation.
(2) The amount of the tax charged under this section is equal to the amount of the repayment of tax which the charity is entitled to claim in respect of the gift aid donation (whether or not such a claim is made).
(2A) Tax charged under this section is charged for the tax year in which the donation mentioned in subsection (1)(a) becomes a tainted donation.
(3) Each of the persons mentioned in subsection (4) is liable for any tax charged under this section, and the liability of those persons is joint and several.
(4) The persons are—
(a) the donor in respect of the gift aid donation,
(b) if different, the donor in respect of the tainted donation,
(c) each linked person (as defined in section 809ZJ(3)) by reference to whom Condition B in section 809ZJ(5) is met in relation to the tainted donation,
(d) any charity to which the gift aid donation or (if different) the tainted donation is made, or any connected charity, which falls within subsection (5).
(5) A charity falls within this subsection if the charity—
(a) is or was party to the arrangements by reference to which Conditions A and B in section 809ZJ are met in relation to the tainted donation, and
(b) was aware or ought reasonably to have been aware, at the time it entered into those arrangements, that Condition B in section 809ZJ was or would be met by reference to the arrangements.
(6) No liability to income tax arises under this section in respect of a repayment of tax, if (and to the extent that) the repayment is itself repaid to the Commissioners for Her Majesty's Revenue and Customs under any other provision of the Tax Acts.
(7) In this section—
“associated donation” has the same meaning as in section 809ZMB;
“linked person” has the same meaning as in section 809ZJ;
...
809ZO Income tax charge where payment of trust income to charity
(1) Income tax is charged under this section if—
(a) a person makes a relievable charity donation in a tax year,
(aa) the donation becomes a tainted donation (whether in that tax year or a later tax year),
(b) the tainted donation or an associated donation is a payment by the trustees of a settlement of income arising under the settlement (“the trust donation”), and
(c) the charity to which the trust donation is made is entitled to claim a repayment of tax in respect of that donation.
(2) The amount of the tax charged under this section is equal to the amount of the repayment of tax which the charity is entitled to claim in respect of the trust donation (whether or not such a claim is made).
(2A) Tax charged under this section is charged for the tax year in which the donation mentioned in subsection (1)(a) becomes a tainted donation.
(3) Each of the persons mentioned in subsection (4) is liable for any tax charged under this section, and the liability of those persons is joint and several.
(4) The persons are—
(a) the trustees of the settlement who made the trust donation,
(b) if different, the donor in respect of the tainted donation,
(c) if section 628 or 630 of ITTOIA 2005 (gifts from settlor-interested trusts etc) applies in relation to the income out of which the trust donation is made, the settlor in relation to the settlement,
(d) each linked person (as defined in section 809ZJ(3)) by reference to whom Condition B in section 809ZJ(5) is met in relation to the tainted donation,
(e) any beneficiary of the settlement who is party to those arrangements, and
(f) any charity to which the trust donation or (if different) the tainted donation is made, or any connected charity, which falls within subsection (5).
(5) A charity falls within this subsection if—
(a) the charity is or was party to the arrangements by reference to which Conditions A and B in section 809ZJ are met in relation to the tainted donation, and
(b) the charity was aware or ought reasonably to have been aware, at the time it entered into those arrangements, that Condition B in section 809ZJ was or would be met by reference to the arrangements.
(6) No liability to income tax arises under this section in respect of a repayment of tax if that repayment is itself repaid to the Commissioners for Her Majesty's Revenue and Customs under any other provision of the Tax Acts.
(7) In this section—
“associated donation” has the same meaning as in section 809ZMB;
“linked person” has the same meaning as in section 809ZJ;
...
“settlement” and “settlor” have the same meaning as in Chapter 5 of Part 5 of ITTOIA 2005 (see section 620 of that Act).
For the purposes of this Chapter, a “connected charity” in relation to another charity means a charity which is connected with that other charity in a matter relating to the structure, administration or control of either charity.
(1) Section 993 (meaning of “connected” persons) applies for the purposes of this Chapter—
(a) subject to section 809ZP, and
(b) as if, after subsection (7) there were inserted the provision in subsection (2).
(2) That provision is—
(8) A person who is a beneficiary of a settlement is connected with—
(a) a person in the capacity as trustee of the settlement, and
(b) the settlor in relation to the settlement.
(9) For the purposes of this section—
(a) two people living together as if they were a married couple or civil partners are treated as if they were spouses or civil partners of each other, and
(c) “close company” includes a company that would be a close company if it were resident in the United Kingdom.
(1) In this Chapter—
“arrangements” includes any scheme, arrangement or understanding of any kind, whether or not legally enforceable, involving a single transaction or two or more transactions;
“charity” includes a registered club within the meaning of section 658(6) of CTA 2010 (meaning of “community amateur sports club” and “registered club”).
(2) In this Chapter, in the case of a charitable trust, references to a charity being entitled to a repayment of, or liable to pay, tax are to be read as references to the trustees of the trust being so entitled or liable.
This Chapter provides for an alternative basis of charge in the case of individuals who were not domiciled in the United Kingdom in tax years before tax year 2025-26 ....
(1) This section applies to an individual for a tax year if ...—
(za) the tax year is the tax year 2024-25 or an earlier tax year,
(a) the individual is UK resident for that year ,
(b) the individual is not domiciled in the United Kingdom in that year ..., and
(c) the individual makes a claim under this section for that year.
(1A) Section 835BA (deemed domicile) applies for the purposes of subsection (1)(b).
(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3) Sections 42 and 43 of TMA 1970 (procedure and time limit for making claims), except section 42(1A) of that Act, apply in relation to a claim under this section as they apply in relation to a claim for relief.
809C Claim for remittance basis by long-term UK resident: nomination of foreign income and gains to which section 809H(2) is to apply
(1) This section applies to an individual for a tax year if ...—
(za) the tax year is the tax year 2024-25 or an earlier tax year,
(a) the individual is aged 18 or over in that year, and
(b) the individual meets ... the 12-year residence test or the 7-year residence test for that year.
(1ZA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(1A) An individual meets the 12-year residence test for a tax year if the individual—
(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b) has been UK resident in at least 12 of the 14 tax years immediately preceding that year.
(1B) An individual meets the 7-year residence test for a tax year if the individual—
(a) does not meet ... the 12-year residence test for that year, but
(b) has been UK resident in at least 7 of the 9 tax years immediately preceding that year.
(2) A claim under section 809B by the individual for that year must contain a nomination of the income or chargeable gains of the individual for that year to which section 809H(2) is to apply.
(3) The income or chargeable gains nominated must be part (or all) of the individual's foreign income and gains for that year.
(4) The income and chargeable gains nominated must be such that the relevant tax increase does not exceed —
(za) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(a) for an individual who meets the 12-year residence test for that year, £60,000;
(b) for an individual who meets the 7-year residence test for that year, £30,000.
(5) “The relevant tax increase” is—
(a) the total amount of income tax and capital gains tax payable by the individual for that year, minus
(b) the total amount of income tax and capital gains tax that would be payable by the individual for that year apart from section 809H(2).
(5A) The references to income tax in subsection (5) do not include income tax under section 424 (gift aid).
(6) See section 809Z7 for the meaning of an individual's foreign income and gains for a tax year.
809D Application of remittance basis without claim where unremitted foreign income and gains under £2,000
(1) This section applies to an individual for a tax year if—
(za) the tax year is the tax year 2024-25 or an earlier tax year,
(a) the individual is UK resident for that year ,
(b) the individual is not domiciled in the United Kingdom in that year ..., and
(c) the amount of the individual's unremitted foreign income and gains for that year is less than £2,000.
unless condition A or condition B is met.
(1A) Condition A is that ... conditions A to F in section 828B are met.
(1B) Condition B is that the individual gives notice in a return under section 8 of TMA 1970 that this section is not to apply in relation to the individual for that year.
(2) The amount of an individual's “unremitted” foreign income and gains for a tax year is—
(a) the total amount of what would (if this section applied) be the individual's foreign income and gains for that year, minus
(b) the total amount of those income and gains that are remitted to the United Kingdom in that year.
809E Application of remittance basis without claim: other cases
(1) This section applies to an individual for a tax year if—
(za) the tax year is the tax year 2024-25 or an earlier tax year,
(a) the individual is UK resident for that year,
(b) the individual is not domiciled in the United Kingdom in that year ...,
(c) for that year the individual either has no UK income or gains or has no UK income and gains other than taxed investment income not exceeding £100.
(d) no relevant income or gains are remitted to the United Kingdom in that year, and
(e) either—
(i) the individual has been UK resident in not more than 6 of the 9 tax years immediately preceding that year, or
(ii) the individual is under 18 throughout that year
unless the individual gives notice in a return under section 8 of TMA 1970 that this section is not to apply in relation to the individual for that year.
(1A) Section 835BA (deemed domicile) applies for the purposes of subsection (1)(b).
(2) For the purposes of subsection (1)(c) the individual's UK income and gains for the tax year are the individual's income and chargeable gains for that year other than what would (if this section applied) be the individual's foreign income and gains for that year.
(2A) For the purposes of subsection (1)(c) “taxed investment income” means UK income or gains consisting of payments within section 946 from which a sum representing income tax has been deducted.
(3) For the purposes of subsection (1)(d) relevant income and gains are—
(a) what would (if this section applied) be the individual's foreign income and gains for the tax year mentioned in subsection (1), and
(b) the individual's foreign income and gains for every other tax year for which section 809B or 809D or this section applies to the individual.
(1) This section applies if section 809B, 809D or 809E applies to an individual for a tax year.
(2) The individual's relevant foreign earnings for that year are charged in accordance with section 22 or 26 of ITEPA 2003.
(3) The individual's relevant foreign income for that year is charged in accordance with section 832 of ITTOIA 2005.
(4) The individual's foreign chargeable gains for that year are charged in accordance with paragraph 1 of Schedule 1 to TCGA 1992.
(5) For the effect on amounts which count as employment income of the individual under certain provisions of Part 7 of ITEPA 2003 (employment-related securities), see Chapter 5A of Part 2 of that Act.
(5A) For the effect on amounts which count as employment income under Chapter 2 of Part 7A of ITEPA 2003, see sections 554Z9 to 554Z11 of that Act.
(6) Nothing in this section applies in relation to nominated income or chargeable gains (see section 809H).
809G Claim for remittance basis: effect on allowances etc
(1) This section applies if section 809B (claim for remittance basis to apply) applies to an individual for a tax year.
(2) For that year, the individual is not entitled to—
(a) any allowance under Chapter 2 of Part 3 (personal allowance and blind person's allowance),
(b) any tax reduction under Chapter 3 of that Part (tax reductions for married couples and civil partners), ...
(ba) any tax reduction under Chapter 3A of that Part (transferable tax allowance for married couples and civil partners), or
(c) any relief under section 457 or 458 (payments for life insurance etc).
(3) See also section 1K(6) of TCGA 1992 (no annual exempt amount for chargeable gains).
809H Claim for remittance basis by long-term UK resident: charge
(1) This section applies if—
(a) section 809B (claim for remittance basis to apply) applies to an individual for a tax year (“the relevant tax year”),
(b) the individual is aged 18 or over in the relevant tax year, and
(c) the individual meets ... the 12-year residence test or the 7-year residence test for the relevant tax year.
(1A) See section 809C..., (1A) and (1B) for when an individual meets ... the 12-year residence test or the 7-year residence test for a tax year.
(2) Income tax is charged on nominated income, and capital gains tax is charged on nominated chargeable gains, as if section 809B did not apply to the individual for the relevant tax year (and neither did section 809D).
(3) “Nominated” income or chargeable gains means income or chargeable gains nominated under section 809C in the individual's claim under section 809B for the relevant tax year.
(3A) If the individual is a Scottish taxpayer for the relevant tax year, the individual is to be treated for the purpose of calculating income tax charged by virtue of subsection (2) as if the individual were not a Scottish taxpayer for that year.
(3B) If the individual is a Welsh taxpayer for the relevant tax year, the individual is to be treated for the purpose of calculating income tax charged by virtue of subsection (2) as if the individual were not a Welsh taxpayer for that year.
(4) If the relevant tax increase would otherwise be less than the applicable amount, subsection (2) has effect as if—
(a) in addition to the income and gains actually nominated under section 809C in the individual's claim under section 809B for the relevant tax year, an amount of income had been nominated so as to make the relevant tax increase equal to the applicable amount, and
(b) the individual's income for that year were such that such a nomination could have been made (if that is not the case).
(5) “The relevant tax increase” is—
(a) the total amount of income tax and capital gains tax payable by the individual for the relevant tax year, minus
(b) the total amount of income tax and capital gains tax that would be payable by the individual for the relevant tax year apart from subsection (2).
(5A) The references to income tax in subsection (5) do not include income tax under section 424 (gift aid).
(5B) The applicable amount” is—
(za) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(a) if the individual meets the 12-year residence test for the relevant tax year, £60,000;
(b) if the individual meets the 7-year residence test for the relevant tax year, £30,000.
(6) Nothing in subsection (4) affects what is regarded, for the purposes of section 809I or 809J, as nominated under section 809C.
809I Remittance basis charge: income and gains treated as remitted
(1) This section applies if—
(a) any of an individual's nominated income and gains is remitted to the United Kingdom in a tax year, ...
(b) any of the individual's remittance basis income and gains has not been remitted to the United Kingdom in or before that year, and
(c) the £10 test is met for that year.
(2) Income tax and capital gains tax are charged, for that year and subsequent tax years, as if the income and chargeable gains treated under section 809J as remitted to the United Kingdom by the individual in that tax year had been so remitted (and income and chargeable gains of the individual that were actually remitted in that year had not been).
(3) An individual's “nominated income and gains” are the total income and chargeable gains nominated by the individual under section 809C for the tax year mentioned in subsection (1)(a) or any earlier tax year (each such year for which the individual has made a nomination under that section being referred to as a “nomination year”).
(4) An individual's “remittance basis income and gains” are the foreign income and gains of the individual for all the tax years (up to and including the tax year mentioned in subsection (1)(a)) for which section 809B, 809D or 809E applies to the individual, apart from the individual's nominated income and gains.
(5) The £10 test is met for the tax year mentioned in subsection (1)(a) (“year X”) if, taking each nomination year separately, the cumulative total as respects at least one nomination year exceeds £10.
(6) In relation to a nomination year—
(a) “the cumulative total” means the sum, for all the tax years in aggregate up to and including year X, of the amounts of relevant income and gains remitted to the United Kingdom in those tax years from that nomination year, and
(b) “relevant income and gains” means the income and chargeable gains nominated by the individual under section 809C for that nomination year.
(1) If section 809I applies, the following steps are to be taken for the purpose of determining the income or gains treated in a tax year (“the relevant tax year”) as remitted to the United Kingdom by the individual.
Step 1
Find the total amount of—
(a) the individual's nominated income and gains, and
(b) the individual's remittance basis income and gains,
that have been remitted to the United Kingdom in the relevant tax year.
This amount is “the relevant amount”.
Step 2
Find the amount of foreign income and gains of the individual for the relevant tax year (other than income or chargeable gains nominated under section 809C) that is within each of the categories of income and gains in paragraphs (a) to (h) of subsection (2).
If none of sections 809B, 809D and 809E apply to the individual for that year, treat those amounts as nil (and accordingly go to step 6).
Step 3
Find the earliest paragraph for which the amount determined under step 2 is not nil.
If that amount does not exceed the relevant amount, treat the individual as having remitted the income or gains within that paragraph (and for that tax year).
Otherwise, treat the individual as having remitted the relevant proportion of each kind of income or gains within that paragraph (and for that tax year).
“The relevant proportion” is the relevant amount divided by the amount determined under step 2 for that paragraph.
Step 4
Reduce the relevant amount by the amount taken into account under step 3.
Step 5
If the relevant amount (as reduced under step 4) is not nil, start again at step 3.
In step 3, read the reference to the earliest paragraph of the kind mentioned there as a reference to the earliest such paragraph which has not previously been taken into account under that step.
Step 6
If the relevant amount (as reduced) is not nil once steps 3 to 5 have been undertaken in relation to all paragraphs of subsection (2) for which the amount determined under step 2 is not nil, start again at step 2.
In step 2, read the reference to the foreign income and gains of the individual for the relevant tax year as a reference to such of the foreign income and gains of the individual for the appropriate tax year as had not been remitted by the beginning of the relevant tax year.
“The appropriate tax year” is the latest tax year which is—
(a) before the last tax year for which step 2 has been undertaken, and
(b) a tax year for which section 809B, 809D or 809E applies to the individual.
(2) The kinds of income and gains are—
(a) relevant foreign earnings (other than those subject to a foreign tax),
(b) foreign specific employment income (other than income subject to a foreign tax),
(c) relevant foreign income (other than income subject to a foreign tax),
(d) foreign chargeable gains (other than gains subject to a foreign tax),
(e) relevant foreign earnings subject to a foreign tax,
(f) foreign specific employment income subject to a foreign tax,
(g) relevant foreign income subject to a foreign tax, and
(h) foreign chargeable gains subject to a foreign tax.
(3) In this section the individual's “nominated income and gains” are the total income and chargeable gains nominated by the individual under section 809C for the relevant tax year or any earlier tax year.
(4) In step 1 of subsection (1) the individual's “remittance basis income and gains” are the foreign income and gains of the individual for all the tax years (up to and including the relevant tax year) for which section 809B, 809D or 809E applies to the individual, apart from the individual's nominated income and gains.
(5) In step 6 of subsection (1) the reference to income or gains being remitted is—
(a) as respects any tax year before section 809I applies, to income or gains being remitted to the United Kingdom, and
(b) as respects any tax year in relation to which that section applies, to income or gains treated under this section as so remitted.
(6) In subsection (2) “foreign tax” means any tax chargeable under the law of a territory outside the United Kingdom.
(1) Sections 809L to 809Z6 apply for the purposes of—
(a) this Chapter,
(b) sections 22 and 26 of ITEPA 2003 (relevant foreign earnings charged on remittance basis),
(c) Chapter 5B of Part 2 of that Act (taxable specific income from employment-related securities etc: internationally mobile employees),
(ca) sections 554Z9 to 554Z11 of that Act (employment income provided through third parties charged on remittance basis),
(d) section 832 of ITTOIA 2005 (relevant foreign income charged on remittance basis), and
(e) Schedule 1 to TCGA 1992 (UK resident individuals not domiciled in UK).
(2) Those sections—
(a) explain what is meant by income or chargeable gains being “remitted to the United Kingdom” (sections 809L to 809O),
(b) provide for the calculation of the amount remitted (section 809P),
(c) contain rules for attributing transfers from mixed funds to particular kinds of income and capital (sections 809Q to 809S),
(d) contain supplementary provision for certain cases (sections 809T and 809U), and
(e) treat income or chargeable gains as not remitted to the United Kingdom in certain cases (sections 809UA to 809Z6).
(1) An individual's income is, or chargeable gains are, “remitted to the United Kingdom” if—
(a) conditions A and B are met,
(b) condition C is met, or
(c) condition D is met.
(2) Condition A is that—
(a) money or other property is brought to, or received or used in, the United Kingdom by or for the benefit of a relevant person, ...
(b) a service is provided in the United Kingdom to or for the benefit of a relevant person , or
(c) money or other property is used outside the United Kingdom (directly or indirectly) for the benefit in the United Kingdom of a relevant person,
(3) Condition B is that—
(a) the property, service or consideration for the service is (wholly or in part) the income or chargeable gains,
(b) the property, service or consideration—
(i) derives (wholly or in part, and directly or indirectly) from the income or chargeable gains, and
(ii) in the case of property or consideration, is property of or consideration given by a relevant person,
(c) the income or chargeable gains are used outside the United Kingdom (directly or indirectly) in respect of a relevant debt, or
(d) anything deriving (wholly or in part, and directly or indirectly) from the income or chargeable gains is used as mentioned in paragraph (c).
(4) Condition C is that qualifying property of a gift recipient—
(a) is brought to, or received or used in, the United Kingdom, and either—
(i) the property is enjoyed by a relevant person, or
(ii) as a result, a benefit is enjoyed by a relevant person,
(b) is consideration for a service that is enjoyed in the United Kingdom by a relevant person,
(ba) is used outside the United Kingdom (directly or indirectly) and as a result a benefit is enjoyed in the United Kingdom by a relevant person, or
(c) is used outside the United Kingdom (directly or indirectly) in respect of a relevant debt.
(5) Condition D is that property of a person other than a relevant person (apart from qualifying property of a gift recipient)—
(a) is brought to, or received or used in, the United Kingdom, and either—
(i) the property is enjoyed by a relevant person, or
(ii) as a result, a benefit is enjoyed by a relevant person,
(b) is consideration for a service that is enjoyed in the United Kingdom by a relevant person,
(ba) is used outside the United Kingdom (directly or indirectly) and as a result a benefit is enjoyed in the United Kingdom by a relevant person, or
(c) is used outside the United Kingdom (directly or indirectly) in respect of a relevant debt,
in circumstances where there is a connected operation.
(6) In a case where subsection (4)(a) , (b) or (ba) or (5)(a) , (b) or (ba) applies to the importation or use of property, the income or chargeable gains are taken to be remitted at the time the property , benefit or service is first enjoyed by a relevant person by virtue of that importation or use.
(7) In this section “relevant debt” means a debt that relates (wholly or in part, and directly or indirectly) to—
(a) property falling within subsection (2)(a),
(b) a service falling within subsection (2)(b),
(c) qualifying property dealt with as mentioned in subsection (4)(a),
(d) a service falling within subsection (4)(b),
(e) qualifying property dealt with as mentioned in subsection (5)(a), or
(f) a service falling within subsection (5)(b).
(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(9) The cases in which property (including income or chargeable gains) is used in respect of a debt include cases where the property is used to pay interest on the debt and cases where the property is used to secure the debt.
(9A) For the purposes of this Chapter, any reference to property being brought to the United Kingdom includes—
(a) sending, or otherwise effecting a transfer of, the property to the United Kingdom, and
(b) in the case of intangible property, taking any steps, or permitting steps to be taken, that would result in property situated outside the United Kingdom becoming situated in the United Kingdom.
(9B) Sections 275 to 275C of TCGA 1992 (location of assets) apply for the purposes of subsection (9A)(b) as they apply for the purposes of TCGA 1992.
(9C) But subsection (9B) does not apply where the intangible property is a debt other than a judgment debt.
(10) This section is subject to sections 809V to 809Z6 (property treated as not remitted to the United Kingdom).
(1) This section applies for the purposes of this Chapter.
(2) A “relevant person” is—
(a) the individual,
(b) the individual's husband or wife,
(c) the individual's civil partner,
(d) a child or grandchild of a person falling within any of paragraphs (a) to (c), if the child or grandchild has not reached the age of 18,
(e) a close company in which a person falling within any other paragraph of this subsection is a participator or a company which is a 51% subsidiary of such a close company,
(f) a company in which a person falling within any other paragraph of this subsection is a participator, and which would be a close company if it were resident in the United Kingdom, or a company which is a 51% subsidiary of such a company,
(g) the trustees of a settlement of which a person falling within any other paragraph of this subsection is a beneficiary, or
(h) a body connected with such a settlement.
(3) For that purpose—
(a) two people living together as if they were a married couple or civil partners are treated as if they were spouses or civil partners of each other,
(c) “close company” is to be read in accordance with Chapter 2 of Part 10 of CTA 2010 (see in particular section 439 of that Act),
(ca) “participator”, in relation to a close company, means a person who is a participator in relation to the company for the purposes of section 455 of CTA 2010 (see sections 454 and 455(5) of that Act) and, in relation to a company that would be a close company if it were resident in the United Kingdom, means a person who would be such a participator if it were a close company,
(cb) “51% subsidiary” has the same meaning as in the Corporation Tax Acts (see Chapter 3 of Part 24 of CTA 2010),
(d) “settlement” and “settlor” have the same meaning as in Chapter 2 of Part 9,
(e) “beneficiary”, in relation to a settlement, means any person who receives, or may receive, any benefit under or by virtue of the settlement,
(f) “trustee” has the same meaning as in section 993 (see, in particular, section 994(3)), and
(g) a body is “connected with” a settlement if the body falls within section 993(3)(c), (d), (e) or (f) as regards the settlement.