Section 809O — Income Tax Act 2007: Section 809L: dealings where there is a connected operation

Section 809L: dealings where there is a connected operation 809O 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 D in section 809L.

2 For the purposes of section 809L(5), the question of whether or not the person whose property is dealt with as mentioned in paragraph (a), (b) , (ba) or (c) of section 809L(5) is a relevant person is to be determined by reference to the time when the property is so dealt with.

3 A “ connected operation ”, in relation to property dealt with as mentioned in section 809L(5)(a), (b) , (ba) or (c), means an operation which is effected—

a with reference to a qualifying disposition, or b with a view to enabling or facilitating a qualifying disposition.

4 A “ qualifying disposition ”is a disposition that—

a is made by a relevant person, b is made to, or for the benefit of, the person whose property is dealt with as mentioned in section 809L(5)(a), (b) , (ba) or (c),

and c is a disposition of money or other property that is, or derives (wholly or in part, and directly or indirectly) from, income or chargeable gains of the individual.

5 But a disposition of property is not a qualifying disposition if the disposition is, or is part of, the giving of full consideration in money or money's worth for the dealing that falls within section 809L(5)(a), (b) , (ba) or (c).

6 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 property being dealt with as mentioned in section 809L(5)(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.