Section 554Z4A | Temporary non-residents ^F1F2

(1)This section applies if A is temporarily non-resident.^F1F2

(2)Any relevant step within subsection (3) is to be treated for the purposes of section 554Z2 as if it were taken in the period of return.^F1F2

(3)A relevant step is within this subsection if—^F1F2

(a)it is the payment of a lump sum to a relevant person (see section 554C(2)),^F1F2

(b)the lump sum is a relevant benefit provided under a relevant scheme,^F1F2

(c)the step is taken in the temporary period of non-residence, and^F1F2

(d)ignoring this section—^F1F2

(i)no charge to tax arises by virtue of section 554Z2 by reason of the step, but^F1F2

(ii)such a charge would arise if the existence of any double taxation relief arrangements were disregarded.^F1F2

(4)Subsection (3)(d)(i) includes a case where the charge could be prevented by making a DTR claim, even if no claim is in fact made.^F1F2

(5)Nothing in any double taxation relief arrangements is to be read as preventing A from being chargeable to income tax in respect of any relevant step treated by virtue of this section as taken in the period of return (or as preventing a charge to that tax from arising as a result).^F1F2

(6)Part 4 of Schedule 45 to FA 2013 (statutory residence test: anti-avoidance) explains—^F1F2

(a)when an individual is to be regarded as “temporarily non-resident”, and^F1F2

(b)what “the temporary period of non-residence” and “the period of return” mean.^F1F2

(7)In this section—^F1F2

“double taxation relief arrangements” means arrangements that have effect under section 2(1) of TIOPA 2010;

“DTR claim” means a claim for relief under section 6 of that Act;

“relevant benefit” has the same meaning as in Chapter 2 of Part 6;

“relevant scheme” means an employer-financed retirement benefits scheme (within the meaning of that Chapter) or a superannuation fund to which section 615(3) of ICTA applies.