INTM600680 | Transfer of assets abroad: The income charge: General conditions - which charge applies?

It is possible that for the same tax year an individual could meet the conditions to be potentially chargeable under both of the income charge provisions. The ‘no duplication of charge’ provisions described at INTM602360 ensure that the same income cannot be taken into account more than once for the purpose of an income charge. The result would be that, if the conditions for both charges were in fact met, only one charge would be made.

It makes little practical difference which one of the two charges is assessed. For example, in a year when both provisions applied, the income may be assessed on the basis that the individual had power to enjoy. But in a future year, perhaps the power to enjoy conditions no longer applied, such that the income charge under ITA07/S720 was not applicable. If the income could continue to be assessed for later years under the capital sum conditions, the income would continue to be assessed but under ITA07/S727.