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E1.1127 Transfer of assets abroad—the escape clause

The following escape clause applies where all the 'relevant transactions' are carried out on or after 5 December 2005. See below for where some or all of the relevant transactions were carried out before that date. A transaction is a relevant transaction if it is a relevant transfer (see E1.1103) or an associated operation (see E1.1104)¹.

The escape clause is that an individual is not liable to income tax under the transfer of assets abroad rules for a tax year by reference to the relevant transactions if the individual satisfies an HMRC officer²:

1. Ìý

   (a)ÌýÌýÌýÌý that it would not be reasonable to conclude that the purpose of avoiding liability to taxation was the purpose (or one of the purposes), for which the relevant transactions (or any one or more of them) were effected, or

2. Ìý

   (b)ÌýÌýÌýÌý (in a case where condition (a) is not met) that all the relevant transactions were genuine commercial transactions (see below) and it would not be reasonable to conclude