INTM600240 - Transfer of assets abroad: General conditions: What is a transfer?

With a limited statutory meaning of what a transfer is, there are a wide range of actions that may amount to a transfer in the sense of to convey from one place, person, ownership, object, group and so on, to another. Some of the more common examples of actions that may involve a transfer are suggested below:

  • disposing of assets, such as shares, securities or other property: Carvill v IRC (Sp C 233)
  • settling of money or other assets into a settlement: Vestey v IRC (54 TC 503), IRC v McGuckian (69 TC 1)
  • giving a gift, such as cash or other assets: Cleary v CIR (44 TC 428)
  • making or receiving of a loan: Ramsden v CIR (37 TC 619)
  • subscribing for shares in a company: Thomas v Marshall (34 TC 203)
  • assigning the right to use goods or services
  • entering into an employment or consultancy agreement or contract: Brackett v CIR (60 TC 134)
  • the straightforward providing of a service by one party to another, whether or not for consideration
  • creating any form of right, for example a right to use a name, trademark, or property
  • arrangements for one party to own, hold or use assets, cash, goods or services of another.

This list is not intended to be exhaustive; neither is it intended to set any legal framework of the form of actions that may amount to a transfer. It simply aims to illustrate the breadth of circumstances that may amount to a transfer.

It can be seen that a transfer could involve a sale, purchase, gift or loan. It may involve entering into arrangements relating to goods, services, rights or the creation of rights. In essence, at the heart of the provisions, there will be an action to change over some form of property, whether real tangible property or intangible property, from or by one person to another.

The fact that an individual may receive a payment or consideration in full for a movement of some form of property from one person to another does not prevent that action from being a transfer for the purposes of the transfer of assets rules.

It must be borne in mind that, although a transfer may have occurred, that in itself is not sufficient to bring the action within the scope of the transfer of assets provisions. Other features must also be present, for example income must arise to the person abroad. The other features are considered in this manual.