In relation to a transfer of assets, an associated operation is an operation of any kind effected by any person in relation to1:
- Ìý
(a)ÌýÌýÌýÌý any of the assets transferred
- Ìý
(b)ÌýÌýÌýÌý any assets representing (directly or indirectly) any of the assets transferred
- Ìý
(c)ÌýÌýÌýÌý income arising from any assets within (a) or (b), or
- Ìý
(d)ÌýÌýÌýÌý any assets representing (directly or indirectly) accumulations of income within (c)
It is of no consequence whether the operation in question is effected before, after or at the same time as the transfer2.
Case law on associated operations
In MacDonald3, an individual (M) ordinarily resident in the UK transferred American securities to an American company (A) in consideration for the issue to her of all the issued share capital of A with the object of avoiding UK income tax (the 1932 transaction). Subsequently M transferred the shares in A to an American trust company (T) with the object of avoiding UK death duties (the 1935 transaction).
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