Finance (No. 2) Act 2017

ITA 2007 U.K.

11 U.K. ITA 2007 is amended as follows.

12 (1) In section 476 (how to work out whether settlor meets condition C in section 475), after subsection (3) insert— U.K.

“(3A) Section 835BA (deemed domicile) applies for the purposes of subsections (2)(b) and (3)(b).”

(2) The amendment made by this paragraph has effect—

(a) so far as relating to section 476(2)(b) of ITA 2007, in relation to a settlor who dies on or after 6 April 2017;

(b) so far as relating to section 476(3)(b) of ITA 2007, in relation to a settlement made on or after 6 April 2017.

13 (1) In section 718 (meaning of “person abroad” etc), after subsection (2) insert— U.K.

“(3) Section 835BA (deemed domicile) applies for the purposes of subsection (1)(b).”

(2) The amendment made by this paragraph has effect in relation to the tax year 2017-18 and subsequent tax years.

14 (1) Chapter A1 of Part 14 (remittance basis) is amended as follows. U.K.

(2) In section 809B (claim for remittance basis to apply), after subsection (1) insert—

“(1A) Section 835BA (deemed domicile) applies for the purposes of subsection (1)(b).”

(3) In section 809C (claim for remittance basis by long-term UK resident: nomination) omit the following—

(a) in subsection (1)(b), “the 17-year residence test,”;

(b) subsection (1ZA);

(c) subsection (1A)(a);

(d) in subsection (1B)(a), “the 17-year residence test or”;

(e) subsection (4)(za).

(4) In section 809E (application of remittance basis without claim: other cases), after subsection (1) insert—

“(1A) Section 835BA (deemed domicile) applies for the purposes of subsection (1)(b).”

(5) In section 809H (claim for remittance basis by long-term UK resident: charge) omit the following—

(a) in subsection (1)(c), “the 17-year residence test,”;

(b) in subsection (1A)—

(i) “(1ZA)”;

(ii) “the 17-year residence test,”;

(c) subsection (5B)(za).

(6) The amendments made by this paragraph have effect in relation to the tax year 2017-18 and subsequent tax years.

This is subject to paragraphs 15 and 16.

15 (1) This paragraph applies in a case where— U.K.

(a) section 10A of TCGA 1992 (temporary non-residents) as originally enacted applies in relation to an individual, and

(b) the year of return is 2017-18.

(2) For the purposes of capital gains tax in respect of foreign chargeable gains accruing to the individual during an intervening year, the amendment made by paragraph 14(2) does not have effect in relation to the year of return.

(3) Where by virtue of sub-paragraph (2) an individual makes a claim under section 809B of ITA 2007 for the tax year 2017-18, sections 809C, 809G and 809H of ITA 2007 do not apply to the individual for that tax year.

(4) In this paragraph—

• “intervening year” and “year of return” have the same meanings as in section 10A of TCGA 1992 as originally enacted;

• “foreign chargeable gain” has the meaning given by section 12(4) of TCGA 1992.

16 (1) This paragraph applies in a case where section 10A of TCGA 1992 as substituted by paragraph 119 of Schedule 45 to FA 2013 applies in relation to an individual. U.K.

(2) For the purposes of capital gains tax in respect of foreign chargeable gains accruing to the individual during a temporary period of non-residence beginning before 8 July 2015, the amendment made by paragraph 14(2) does not have effect in relation to the tax year which consists of or includes the period of return.

(3) Where by virtue of sub-paragraph (2) an individual makes a claim under section 809B of ITA 2007 for any of the tax years 2017-18 to 2020-21 inclusive, sections 809C, 809G and 809H of ITA 2007 do not apply to the individual for that tax year.

(4) In this paragraph, “foreign chargeable gain” has the meaning given by section 12(4) of TCGA 1992.

(5) Part 4 of Schedule 45 to FA 2013 explains what “temporary period of non-residence” and “period of return” mean.

17 (1) In section 834 (residence of personal representatives), at the end insert— U.K.

“(5) Section 835BA (deemed domicile) applies for the purposes of subsection (3).”

(2) The amendment made by this paragraph has effect in relation to the tax year 2017-18 and subsequent tax years.