INTM600280 | Transfer of assets abroad: General conditions: Location of assets

The location of assets either before or after a transfer does not affect the application of the provisions if one of the required outcomes of a transfer is present. Those outcomes are discussed in more detail elsewhere in this guide (for example, see INTM600340).

The heading of Chapter 2, Part 13 Income Tax Act 2007 is ‘Transfer of Assets Abroad’ but in fact there is nothing within the legislation itself requiring that assets must be located outside the UK or moved abroad from the UK.

In his decision in the case of CIR v Willoughby (70 TC 57) at page 81, the Special Commissioner appears to share this view, saying

In my opinion, and so I hold, this language may be satisfied whether the assets are transferred from the UK to outside the UK, or being outside the UK they are transferred to a person outside the UK.