Section 728 | Individuals receiving capital sums as a result of relevant transactions

(1)Income is treated as arising to such an individual as is referred to in section 727(1) or 727A(1) in a tax year for income tax purposes if—^F1

(a)income has become the income of a person abroad as a result of—

(i)a relevant transfer,

(ii)one or more associated operations, or

(iii)a relevant transfer and one or more associated operations, ...^F2

(b)the capital receipt conditions are met in respect of the individual in the tax year (see section 729) , and^F3

(c)the individual is UK resident for the tax year.^F3

(1A)The amount of the income treated as arising under subsection (1) is equal to the amount of the income of the person abroad (subject to subsection (2)).^F4

(2)Section 725 (reduction in amount charged where controlled foreign company involved) applies for determining the amount of income treated as arising under subsection (1) as if—^F5

(a)in subsection (1) of that section—^F5

(i)the reference to section 721 were a reference to this section, and^F5

(ii)the reference to section 721(2) were a reference to subsection (1)(a) of this section, and^F5

(b)subsections (2A) and (2B) of that section were omitted.^F5

(2A)Subsection (1) does not apply if—^F6

(a)the individual is liable for income tax charged on the income of the person abroad by virtue of a charge not contained in this Chapter, and^F6

(b)all that income tax has been paid.^F6

(3)It does not matter for the purposes of this section—

(a)Repealed^F7

(b)whether the individual is UK resident for the tax year in which the relevant transfer abroad is made (if different from the tax year mentioned in subsection (1)), or^F8

(c)whether the avoiding of liability to income tax is a purpose for which that transfer is effected.