The Offshore Funds (Tax) Regulations 2009

[F1 Temporary non-residents U.K.

23.— (1) This regulation applies where an individual (“the taxpayer”) is temporarily non-resident.

(2) The taxpayer is chargeable to income tax as if offshore income gains within paragraph (3) were offshore income gains arising to the taxpayer in the period of return.

(3) The offshore income gains within this paragraph are those that—

(a) arise to the taxpayer in the temporary period of non-residence, and

(b) would be treated under section 13 of TCGA 1992 (attribution of gains to members of non-resident companies) as it applies to offshore income gains by virtue of regulation 24 as having arisen to the taxpayer in that period if the residence assumption were made.

(4) The residence assumption is—

(a) that the taxpayer had been resident in the United Kingdom for the tax year in which the offshore income gain arose to the company, or

(b) if that tax year was a split year as respects the taxpayer, that offshore income gain had arisen to the company in the UK part of it.

(5) But a gain is not within paragraph (3) if, ignoring this regulation, the taxpayer is chargeable to income tax in respect of it (and could not cease to be so chargeable by making a claim under section 6 of the Taxation (International and Other Provisions) Act 2010).

(6) Paragraph (2) is subject to regulation 23A.

(7) If section 809B, 809D or 809E of ITA 2007 (remittance basis) applies to the taxpayer for the year of return, any offshore income gains to which regulation 19(2) applies falling within paragraph (3) of this regulation by virtue of sub-paragraph (a) of that paragraph that were remitted to the United Kingdom at any time in the temporary period of non-residence are to be treated as remitted to the United Kingdom in the period of return.

(8) In this regulation—

(a) “remitted to the United Kingdom” has the same meaning as in Chapter A1 of Part 14 of ITA 2007,

(b) “split year” has the meaning given in paragraph 43 of Schedule 45 to the Finance Act 2013,

(c) “temporarily non-resident” has the meaning given in paragraph 110 of that Schedule,

(d) “the UK part” of a split year has the meaning given in paragraph 56 of that Schedule.

(9) In this regulation and regulation 23A—

(a) “period of return” has the meaning given in paragraph 115 of Schedule 45 to the Finance Act 2013,

(b) “temporary period of non-residence” has the meaning given in paragraph 113 of that Schedule, and

(c) “the year of return” has the meaning given in section 10A(11) of TCGA 1992.]

Textual Amendments

F1 Reg. 23, 23A substituted for reg. 23 (with effect in accordance with reg. 2(b) of the amending S.I.) by The Temporary Non-Residence (Miscellaneous Amendments) Regulations 2013 (S.I. 2013/1810), regs. 1, 4(2)