Section 809N — Income Tax Act 2007: Section 809L: gift recipients, qualifying property and enjoyment

Section 809L: gift recipients, qualifying property and enjoyment 809N 1 This section applies for the purposes of determining whether or not income or chargeable gains of an individual are remitted to the United Kingdom by virtue of condition C in section 809L.

2 A “ gift recipient ” means a person, other than a relevant person, to whom the individual makes a gift of money or other property that—

a is income or chargeable gains of the individual, or b derives (wholly or in part, and directly or indirectly) from income or chargeable gains of the individual.

3 The question of whether or not a person is a relevant person is to be determined by reference to the time when a gift is made.

4 But, if a person to whom a gift is made subsequently becomes a relevant person, the person ceases to be a gift recipient.

5 The individual “makes a gift of” property if the individual disposes of the property—

a for no consideration, or b for consideration less than the full consideration in money or money's worth that would be given if the disposal were by way of a bargain made at arm's length; but, in a case falling in paragraph (b), the individual is to be taken to make a gift of only so much of the property as exceeds the consideration actually given.

6 A reference to the individual making a gift of property includes a case where—

a the individual retains an interest in the property, or b an interest, right or arrangement enables or entitles the individual to benefit from the property. 7 “ Qualifying property ”, in relation to a gift recipient, is—

a the property that the individual gave to the gift recipient, b anything that derives (wholly or in part, and directly or indirectly) from that property, or c any other property, but only if it is dealt with as mentioned in section 809L(4)(a), (b) , (ba) or (c) by virtue of an operation which is effected—

i with reference to the gift of the property to the gift recipient, or ii with a view to enabling or facilitating the gift of the property to the gift recipient to be made.

8 In subsection (7)—

a the reference in paragraph (b) to anything deriving from property, and b the reference in paragraph (c) to other property, includes a thing, or property, that does not belong to the individual but which the individual is enabled or entitled to benefit from by virtue of any interest, right or arrangement.

9 Enjoyment by a relevant person of property , a benefit or a service is to be disregarded in any of these cases—

a in the case of enjoyment of property or a service, if the property or service is enjoyed virtually to the entire exclusion of all relevant persons, aa in the case of enjoyment of a benefit—

i if the qualifying property being dealt with as mentioned in section 809L(4)(a) or (ba) results in a benefit being enjoyed by relevant persons and persons who are not relevant persons, and ii the enjoyment by all relevant persons is no more than negligible, b if full consideration in money or money's worth is given by a relevant person for the enjoyment, or c if the property , benefit or service is enjoyed by relevant persons in the same way, and on the same terms, as it may be enjoyed by the general public or by a section of the general public.