Section 729 | The capital receipt conditions

(1)For the purposes of section 728(1), the capital receipt conditions are met in respect of the individual in a tax year (“the relevant year”) if—

(a)either—

(i)in the relevant year the individual receives or is entitled to receive any capital sum, whether before or after the relevant transfer, or

(ii)in any earlier tax year the individual has received any capital sum, whether before or after the relevant transfer, and

(b)the payment of that sum is (or, in the case of an entitlement, would be) in any way connected with any relevant transaction.

(2)But subsection (1)(a)(ii) does not apply merely because of the receipt of a sum by way of loan if the loan is wholly repaid before the relevant year begins.

(3)In subsection (1) “capital sum” means—

(a)any sum paid or payable by way of loan or repayment of a loan, and

(b)any other sum paid or payable—

(i)otherwise than as income, and

(ii)not for full consideration in money or money's worth.

(4)For the purposes of subsection (1), a sum is treated as a capital sum which the individual (“A”) receives or is entitled to receive if another person receives or is entitled to receive it—

(a)at A's direction, or

(b)as a result of the assignment by A of A's right to receive it.