INTM600220 - Transfer of assets abroad: General conditions: Relevant transfer
ITA07/S716 explains what is meant by a relevant transfer.
A relevant transfer is one which:
- is a transfer of assets, and
- as a result of the transfer, one or more associated operations, or the transfer and one or more associated operations, income becomes payable to a person abroad.
The only meaning given to the word ‘transfer’ itself within the legislation is to the effect that in relation to rights it includes the creation of rights. It may be stating the obvious, but in the absence of any more specific meaning within the legislation itself, the term ‘transfer’ must carry its ordinary, everyday meaning. A wide range of circumstances may therefore represent a ‘transfer’ and INTM600240 gives some illustrations.
The term ‘assets’ is given slightly more attention by the legislation and this is explained in INTM600260.
INTM600300 sets out the detail of what is meant by an ‘associated operation’ and INTM600340 onwards looks in more detail at income becoming payable to a person abroad.
Where a transfer of assets or any associated operation involve the creation of a settlement outside the UK, it should be borne in mind that the Settlements Legislation in Chapter 5, Part 5 of ITTOIA 2005 may also apply in relation to the transaction. Where the settlement is settlor interested, the income arising in the settlement will be assessable on the settlor under ITTOIA05/S624.
Guidance on the application of the Settlements Legislation can be found in the Trusts, Settlements & Estates Manual at TSEM4000 onwards.