INTM600160 | Transfer of assets abroad: General conditions: Introduction

In broad terms there are certain basic features which must be present before a charge can arise under the transfer of assets abroad legislation:

• there must be a relevant transfer

• there must be income that becomes payable to a person abroad as a result of the transfer and/or one or more associated operations

• there must be an individual who is the subject of a potential charge

• the individual must be UK resident

Where these features are present, and the detailed conditions for one of the charges are met, the provisions impose a charge to income tax on the individual to whom the income is treated as arising.

With the introduction of the Statutory Residence Test (SRT) from 6 April 2013, individuals only have to be resident in the UK. The concept of ordinarily resident no longer exists.

For periods before 6 April 2013, an individual had to be ordinarily resident in the UK for the charge to apply. This guidance covers the current legislation, however guidance covering periods prior to 6 April 2013 and ordinarily residence can be found at INTM600500.