Transfer of assets abroad—charge on individuals receiving a benefit
E1.1117 Transfer of assets abroad—the benefits charge under ITA 2007, s 731
Income tax is chargeable under the transfer of assets abroad (TOAA) rules, specifically under ITA 2007, s 731, on income treated as arising to an individual by virtue of his receiving a benefit out of assets available as a result of a transfer of assets abroad. Before 2017/18 this was described as a charge on non-transferors, in contrast to E1.1103 and E1.1112 where the charge is on the transferor of the assets. The charge will still in most cases be on a non-transferor, but can fall on the transferor in certain circumstances. There is no requirement in the section itself that there has to be a tax avoidance motive to the transfer, but the exemptions at E1.1127 and E1.1129 are potentially available.
The change alluded to above was made as part of a raft of amendments made in 2017 to the TOAA rules generally and, as reflected below, to the charge under ITA 2007, s 731 in particular. These changes were a consequence of the
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