Transfer of assets abroad: introduction
(This content has been withheld because of exemptions in the Freedom of Information Act 2000)
Part 13, Chapter 2, ITA 2007 (the Transfer of Assets Abroad legislation) provides wide-ranging anti-avoidance powers, designed to prevent the avoidance of Income Tax by individuals. The legislation counteracts avoidance by individuals who use overseas companies, trusts or other entities to reduce UK tax liability
Business Assets and International Technical and Valuation Team, Bootle is responsible for the operation of the legislation and technical advice thereon. Whilst Operational Units in WMBC Wealthy, WMBC Assets and Fraud Investigation Service undertake compliance casework in the subject matter.
Section 721 and 727 apply to an individual who transfers assets, or who procures or is associated with a transfer by somebody else. See INTM600020 for an overview of the ‘Income Charge’.
Section 731 applies to an individual who has not personally transferred assets but who benefits from a transfer made by somebody else. See INTM600030 for an overview of the ‘Benefits Charge’.
Sections 736 - 742 provide an exemption from the legislation in certain circumstances. See INTM600040.
All requests for:
- advice on the application and interpretation of the provisions (Technical Advice);
- advice on whether an application for exemption should be refused;
- consideration of a case for potential litigation, or the taxpayer instigates litigation;
should be sent to BAI Technial and Valuation Team, Bootle.
INTM600050 explains when you should otherwise make a referral of a case that may involve the transfer of assets legislation.
INTM600060 provides a checklist of indicators of potential tax avoidance.