Section 835O: Meaning of “qualifying period”, “relevant disregarded income” and “beneficial entitlement”
1219.This section defines three terms used in section 835N (and also in sections 835P and 835Q, which modify the effect of section 835N in certain cases). It is based on section 127(5), (6) and (7) of FA 1995.
1220.Subsection (3) adopts the term “relevant disregarded income” in preference to the term “relevant excluded income” in section 127(5) of FA 1995. Section 821 of ITA, which is also based on section 127(5) of FA 1995, similarly adopts the term “relevant disregarded income”.
1221.In subsection (3), a reference to “the total of the non-UK resident’s income” has been substituted for the reference in section 127(5) of FA 1995 to “the aggregate of such of the profits and gains of the non-resident”. As section 127(5)(b) of FA 1995 requires that this aggregate falls to be treated (apart from the 20% rule) as excluded income, the reference to “such of the profits and gains” is limited by the source legislation to so much of the profits and gains as is income.
1222.In subsection (3)(b) the words:
“in relation to which the independent investment manager conditions are met, ignoring the requirements of the 20% rule”
are the same as appear in section 821(4)(b) of ITA. They have the same effect as the words cross‑referring to Chapter 1 of Part 14 of ITA which were substituted in section 127(5)(b) of FA 1995 by ITA.
