INTM601680 - Transfer of assets abroad: The benefits charge: Person chargeable

For tax years up to and including 2012-2013

The persons chargeable to the benefits charge are those individuals who receive benefits in a tax year for which they are ordinarily resident in the UK, and where such benefits have been provided out of assets available for the purpose as a result of relevant transactions.

For tax years from 2013-2014 onwards

Following the changes made in the Finance Act of 2013, the persons chargeable to the benefits charge are those individuals who receive a benefit in a tax year for which they are resident in the UK, and where such benefits have been provided out of assets available for the purpose as a result of relevant transactions.

For periods before 6 April 2017

The individual must not have made, or have been associated with, the relevant transfer (INTM600220), nor be otherwise chargeable to income tax on the benefit: ITA07/S732(1)(e).

For periods beginning with 6 April 2017

If the individual

• is UK domiciled, or
• is UK deemed domiciled under Condition A of ITA07/S835BA,

the individual must not have made, or have been associated with, the relevant transfer for the benefits charge to apply.

If the individual

• is not UK domiciled, or
• is UK deemed domiciled under Condition B of ITA07/S835BA

then, in relation to benefits provided by certain non-resident trusts, that individual may be liable under the benefits charge provisions if they made or have been associated with the relevant transfer. For further details on the benefits charge applicable to non-domiciled and deemed domiciled transferors see INTM603180 onwards.

Note

If the individual is ordinarily resident in the UK for the years up to and including 2012-2013 or resident in the UK for years from 2013-2014, but is not domiciled in the UK, see INTM602100 for the effect this may have on any liability to income tax under the benefits charge.