M1(1)Section [F113 of the 1992 Act] (chargeable gains accruing to certain non-resident companies) shall have effect in relation to offshore income gains subject to the following modifications—
(a)for any reference to a chargeable gain there shall be substituted a reference to an offshore income gain;
(b)for the reference in subsection (7) to capital gains tax there shall be substituted a reference to income tax or corporation tax; and
(c)paragraphs (b) and (c) of subsection (5) and subsection (8) shall be omitted.
(2)Subject to subsections (3) and (4) below, sections [F187 to 90 and 96 to 98 of the 1992 Act] (gains of non-resident settlements) shall have effect in relation to offshore income gains subject to the following modifications—
(a)for any reference to chargeable gains, other than the reference in section [F187(6)], there shall be substituted a reference to offshore income gains;
(b)[F1in section 87(2) of the 1992 Act for the words “tax under section 2(2)”] there shall be substituted the words “ income tax by virtue of section 761 of the Taxes Act ”;
(c)in section [F187(7)] the reference to tax shall be construed as a reference to income tax or corporation tax; and
(d)sections [F187(10) and 97(6)] shall be omitted.
(3)In section [F187(6) of the 1992 Act], both as it applies apart from subsection (2) above and as applied by subsection (2) above, the reference to chargeable gains shall be construed as including a reference to offshore income gains.
(4)If, in any year of assessment—
(a)under subsection (3) of section [F187 of the 1992 Act], as it applies apart from subsection (2) above, a chargeable gain falls to be attributed to a beneficiary, and
(b)under that subsection, as applied by subsection (2) above, an offshore income gain also falls to be attributed to him,
subsection (4) of that section (gains attributed in proportion to capital payments received) shall have effect as if it required offshore income gains to be attributed before chargeable gains.
(5)Subject to subsection (6) below, for the purpose of determining whether an individual ordinarily resident in the United Kingdom has a liability for income tax in respect of an offshore income gain which arises on a disposal to which this Chapter applies where the disposal is made by a person resident or domiciled outside the United Kingdom—
(a)[F2Chapter 2 of Part 13 of ITA 2007 (transfer of assets abroad)] shall apply as if the offshore income gain arising to the person resident or domiciled outside the United Kingdom constituted income becoming payable to him, and
(b)any reference in [F3that Chapter] to income of (or payable or arising to) such a person accordingly includes a reference to the offshore income gain arising to him by reason of the disposal to which this Chapter applies.
(6)To the extent that an offshore income gain is treated, by virtue of subsection (1) or subsection (2) above, as having accrued to any person resident or ordinarily resident in the United Kingdom, that gain shall not be deemed to be the income of any individual for the purposes of [F4Chapter 2 of Part 13 of ITA 2007] or any provision of [F5Chapter 5 of Part 5 of ITTOIA 2005].
Textual Amendments
F1Words in s. 762(1)-(4) substituted (6.3.1992 with effect as mentioned in s. 289(1)(2) of the amending Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 289, 290, Sch. 10 para. 14(48) (with ss. 60, 101(1), 171, 201(3))
F2Words in s. 762(5)(a) substituted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 180(a)(i) (with Sch. 2)
F3Words in s. 762(5)(b) substituted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 180(a)(ii) (with Sch. 2)
F4Words in s. 762(6) substituted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 180(b) (with Sch. 2)
F5Words in s. 762(6) substituted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 309(b) (with Sch. 2)
Marginal Citations
M1Source—1984 s.97