Section 728 — Income Tax Act 2007: Individuals receiving capital sums as a result of relevant transactions

Individuals receiving capital sums as a result of relevant transactions 728 1 Income is treated as arising to such an individual as is referred to in section 727(1) or 727A(1) in a tax year for income tax purposes if—

a income has become the income of a person abroad as a result of—

i a relevant transfer, ii one or more associated operations, or iii a relevant transfer and one or more associated operations, ... b the capital receipt conditions are met in respect of the individual in the tax year (see section 729) , and c the individual is UK resident for the tax year . 1A The amount of the income treated as arising under subsection (1) is equal to the amount of the income of the person abroad (subject to subsection (2)).

2 Section 725 (reduction in amount charged where controlled foreign company involved) applies for determining the amount of income treated as arising under subsection (1) as if—

a in subsection (1) of that section—

i the reference to section 721 were a reference to this section, and ii the reference to section 721(2) were a reference to subsection (1)(a) of this section, and b subsections (2A) and (2B) of that section were omitted. 2A Subsection (1) does not apply if—

a the individual is liable for income tax charged on the income of the person abroad by virtue of a charge not contained in this Chapter, and b all that income tax has been paid.

3 It does not matter for the purposes of this section—

a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . b whether the individual is UK resident for the tax year in which the relevant transfer abroad is made (if different from the tax year mentioned in subsection (1)), or c whether the avoiding of liability to income tax is a purpose for which that transfer is effected.