The following Private Client guidance note Produced in partnership with James Quarmby of Stephenson Harwood LLP provides comprehensive and up to date legal information covering:
Part 13, Chapter 2 of the Income Tax Act 2007 (ITA 2007) contains a key UK anti-avoidance mechanism known as the Transfer of Assets Abroad Code (TAA Code). The TAA Code imposes a charge to income tax where there is a 'relevant transaction' in three situations.
First, there is a charge on individuals to whom income is treated as arising under ITA 2007, s 721—those with power to enjoy income (see Practice Note: Transfer of assets abroad—transferors having the power to enjoy income).
Secondly, there is a charge on individuals to whom income is treated as arising under ITA 2007, s 728—those receiving capital sums (see Practice Note: Transfer of assets abroad—transferors receiving capital sums). Both of these charges are known as the 'transferor charge'.
Thirdly, there is a charge on individuals to whom income is treated as arising under ITA 2007, s 732—non-transferors receiving a benefit. The third charge is known as the 'non-transferor charge' and applies to individuals other than the transferor who receive benefits from offshore entities, for example beneficiaries under a trust (see Practice Note: Transfer of assets abroad—the benefits charge).
A 'relevant transaction' is a transaction if it is a 'relevant transfer' or 'an associated operation'.
The charge under the TAA Code applies where there has been a relevant transfer.
A relevant transfer takes place
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