203. Charge where capital sums are received.

The charge on income treated as arising where individuals1 receive capital sums applies for the purpose of preventing the avoiding of liability to income tax by individuals who are UK resident by means of relevant transfers2. Income tax is charged on income treated as arising to such an individual receiving a capital sum as a result of a relevant transaction3. Tax is charged on the amount of income treated as arising in the tax year4. The person liable for any tax so charged is the individual to whom the income is treated as arising5.

Income is treated as arising to