Section 809AZA — Income Tax Act 2007: Application of Chapter

Application of Chapter 809AZA 1 This Chapter applies where—

a a person within the charge to income tax (“ the transferor ”) makes a transfer to another person (“ the transferee ”) of a right to relevant receipts (see subsection (2)),

and b (subject to subsection (3)) the transfer of the right is not a consequence of the transfer to the transferee of an asset from which the right to relevant receipts arises. 2 “ Relevant receipts ” means any income—

a which (but for the transfer) would be charged to income tax as income of the transferor, or b which (but for the transfer) would be brought into account in calculating profits of the transferor for the purposes of income tax.

3 Despite paragraph (b) of subsection (1), this Chapter applies if the transfer of the right is a consequence of the transfer to the transferee of all rights under an agreement for annual payments; and for the purposes of that paragraph the transfer of an asset under a sale and repurchase agreement is not to be regarded as a transfer of the asset.

4 Section 809AZB makes provision as to the consequences of this Chapter applying.

5 For exclusions from this Chapter, see—

a section 809AZC (amount otherwise taxed),

b section 809AZD (certain annuities),

and c section 809AZE (transfer by way of security).

6 Section 809AZF makes special provision about transfers of partnership shares.

7 Section 809AZG contains supplementary provisions.