Income Tax Act 2007

Transfers of assets abroad: whether personal representatives are “persons abroad” U.K.

136 (1) This paragraph deals with whether section 834 (residence of personal representatives) applies in determining if personal representatives are persons abroad (as defined in section 718) for the purposes of sections 727 to 730 (charge where individuals receive capital sums as a result of transfers of assets abroad etc) (and accordingly whether section 718(2)(c) applies for those purposes). U.K.

(2) Section 834 does not apply for the purposes of sections 727 to 730 in relation to income payable before 15 June 1989.

(3) Section 834 does not apply for the purposes of sections 727 to 730 in relation to income payable on or after 15 June 1989 if—

(a) the individual received or became entitled to receive the capital sum mentioned in section 729(1) before that date, and

(b) the capital sum was wholly repaid or the right to it waived before 1 October 1989.

(4) In sub-paragraph (3) “capital sum” has the meaning given in section 729, and subsection (4) of that section applies for the purposes of that sub-paragraph as it applies for the purposes of section 729(1).

137 (1) Sub-paragraph (2) deals with whether section 834 (residence of personal representatives) applies for the purposes of sections 731 to 735 (charge where individuals receive a benefit as a result of transfers of assets abroad etc) (and accordingly whether section 718(2)(c) applies for those purposes). U.K.

(2) Section 834 does not apply for the purposes of sections 731 to 735 in relation to benefits received before 15 June 1989.

(3) Sub-paragraphs (4) and (5) apply for the purposes of section 733 (income charged under section 731) in finding the amount of income treated as arising under section 732(2) in respect of benefits received on or after 15 June 1989.

(4) In determining the relevant income of an earlier tax year for the purposes of section 733(1) (see Step 4), income that arose to personal representatives before 6 April 1989 is treated as arising to persons abroad if one or more of them were resident outside the United Kingdom, even though one or more were not so resident.

(5) But sub-paragraph (4) does not apply if the personal representatives have been charged to tax on that income.