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Home / Simons-Taxes /Personal and employment tax /Part E1 Income tax /Division E1.11 Transfer of assets abroad /Individuals with power to enjoy income as a result of transfer of assets abroad / E1.1103 Conditions for charge under ITA 2007, s 720 on transfer of assets abroad to apply
Commentary

E1.1103 Conditions for charge under ITA 2007, s 720 on transfer of assets abroad to apply

Personal and employment tax

E1.1103 Conditions for charge under ITA 2007, s 720 on transfer of assets abroad to apply

The stated purpose of ITA 2007, s 720 is to prevent the avoiding of liability to income tax by individuals resident in the UK by means of 'relevant transfers'1.

The legislation achieves its purpose by treating income as arising to any such individual, thus creating a tax charge on such income, subject to the conditions detailed below being met. See E1.1107 below as regards the amount of income treated as arising.

Conditions for the charge to apply

For the charge to apply to an individual, there are three conditions that must be met as follows2:

  1. Ìý

    •ÌýÌýÌýÌý the first condition is that, as a result of a 'relevant transfer' (see below), or one or more associated operations (see E1.1104, or a relevant transfer together with one or more associated operations, the individual has, in the tax year, 'power to enjoy' (see E1.1106) income of a person abroad

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