Transfer of Assets Abroad—EU Defence
Produced in partnership with James Quarmby of Stephenson Harwood LLP
Transfer of Assets Abroad—EU Defence

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:

  • Transfer of Assets Abroad—EU Defence
  • Transfer of Assets Abroad Code
  • Action by EU Commission
  • EU defence and transferor charge
  • EU Defence and non-transferor charge
  • Conclusion
  • Postscript: The impact of Brexit

Transfer of Assets Abroad Code

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