INTM601460 | Transfer of assets abroad: The benefits charge: General provisions

Prior to 6 April 2007 the benefits charge was contained in ICTA88/S740, with ICTA88/S740(2) introducing the charge by treating an amount as income of the individual for the particular tax year and charging that amount to income tax for that year.

The charge is now headed, “Charge where benefit received” and is contained in ITA07/S731 – 735C.

Under these provisions:

• income tax is charged on income treated as arising to an individual by the provisions (INTM601480)

• tax is charged on the amount of income treated as arising for the tax year (INTM601740)

• the person who is liable to the charge is the individual to whom the income is treated as arising (INTM601680).

An exemption from tax is provided where conditions are met: see INTM602620 onwards.

For the benefits charge there is no equivalent to the ‘same deductions and reliefs’ clause that operates for the income charge (INTM600620).