Commentary

E1.1129 Transfer of assets abroad—exemption for genuine transactions

Personal and employment tax

E1.1129 Transfer of assets abroad—exemption for genuine transactions

E1.1129 Transfer of assets abroad—exemption for genuine transactions

Income is to be left out of account in applying the transfer of assets abroad (TOAA) rules insofar as the chargeable individual satisfies an HMRC officer that the income is attributable to a relevant transaction (see E1.1127) effected on or after 6 April 2012 where both conditions (1) and (2) below are met1.

Condition (1) can be set out as a hypothetical question: were the transaction to be considered genuine, viewed objectively and having regard to any arrangements under which it is effected and any other relevant circumstances, would the imposition of tax under the TOAA rules be an unjustified and disproportionate restriction on a freedom protected under a specified EU treaty provision, such as to contravene that treaty provision? If so, then the condition is met2. The EU treaty provisions in question3 protect freedom of movement of persons, capital, services and goods. Condition (1) currently remains unchanged following the UK's withdrawal from the EU and the end of

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