Part 13Tax avoidance
Chapter 2Transfer of assets abroad
Exemptions: no tax avoidance purpose or genuine commercial transaction
740Exemption: relevant transactions include both pre-5 December 2005 and post-4 December 2005 transactions
1
This section applies if the relevant transactions include both pre-5 December transactions and post-4 December transactions.
2
An individual is not liable to tax under this Chapter for the tax year by reference to the relevant transactions if—
a
the condition in section 737(2) (exemption where all relevant transactions are post-4 December 2005 transactions) is met by reference to the post-4 December 2005 transactions, and
b
the condition in section 739(2) (exemption where all relevant transactions are pre-5 December 2005 transactions) is met by reference to the pre-5 December transactions.
3
If subsection (2)(b) applies but subsection (2)(a) does not, this Chapter applies with the modifications in subsections (4) to (6).
4
For the purposes of sections 720 to 730, any income arising before 5 December 2005 must not be brought into account as income of the person abroad.
5
In determining the relevant income of an earlier tax year for the purposes of section 733(1) (see Step 4), it does not matter whether that year was a year for which the individual was not liable under section 731 because of section 739 or this section.
6
For the purposes of Step 1 in section 733(1), a benefit received by the individual in or before the tax year 2005-06 is to be left out of account.
7
But, in the case of a benefit received in the tax year 2005-06, subsection (6) applies only so far as, on a time apportionment basis, the benefit fell to be enjoyed in any part of the year that fell before 5 December 2005.