Part 13Tax avoidance
Chapter 2Transfer of assets abroad
Charge where benefit received
734Reduction in amount charged: previous capital gains tax charge
1
This section applies if—
a
benefits provided as mentioned in section 732(1)(c) are received in a tax year,
b
for that tax year the whole or part of any benefits so provided is a capital payment to which section 87 or 89(2) of, or paragraph 8 of Schedule 4C to, TCGA 1992 applies (chargeable gains: gains attributed to beneficiaries),
c
it is such a payment because the total untaxed benefits exceed the available relevant income (see Step 6 in section 733(1)) and so it is not treated as income arising to the individual under section 732(2), and
d
because of that capital payment chargeable gains are treated as accruing to the individual in that or a subsequent tax year under any of the provisions referred to in paragraph (b).
2
For any tax year after one in which such chargeable gains are so treated, the amount of income treated as arising to the individual under section 732(2) in respect of benefits provided as mentioned in section 732(1)(c) as a result of the transfer or operations in question is calculated as follows.
3
The amount is calculated under section 733(1) as if the total untaxed benefits were reduced by the amount of those gains.
4
In this section “the total untaxed benefits” and “the available relevant income” have the same meaning as in section 733(1) (see Steps 2 and 5).