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Transfer of assets abroad—overview

The transfer of assets abroad provisions (see Division E1.11) target situations where assets have been moved or are situated offshore to avoid UK income tax on the income arising¹.

Funds provided to a non-resident settlement constitute a transfer of assets abroad for the purposes of these provisions.

These anti-avoidance provisions, which attribute the trust's income to the settlor in a number of scenarios, received a major overhaul from 6 April 2017 and it is these rules that follow.

The main charges apply where:

1. Ìý

   (a)ÌýÌýÌýÌý the settlor has power to enjoy income from assets transferred abroad²

2. Ìý

   (b)ÌýÌýÌýÌý the settlor receives capital sums from assets transferred abroad³

3. Ìý

   (c)ÌýÌýÌýÌý an individual receives a benefit out of assets that are available as a result of a transfer of assets abroad⁴

4. Ìý

   (d)ÌýÌýÌýÌý a benefit is provided out of PFSI to a close family member who is not taxable because they are not UK resident or they are