Section 735AB | “Protected foreign-source income” and “transitionally protected income”

(1)For the purposes of sections 735AA to 735AF—

“protected foreign-source income”, in relation to the relevant transfer, means income of the person abroad that by reference to the transfer—

would have been treated as arising to the settlor under section 721 in any of the tax years 2017-18 to 2024-25 had it not been protected foreign-source income within the meaning of section 721A (as that section had effect for that tax year), or

would have been treated as arising to the settlor under section 728 in any of the tax years 2017-18 to 2024-25 had it not been protected foreign-source income within the meaning of section 729A (as that section had effect for that tax year);

“transitionally protected income”, in relation to the relevant transfer, means income of the person abroad that by reference to the transfer—

was treated as arising to the settlor under section 721 or 728 in a tax year earlier than the tax year 2017-18,

was not remitted to the United Kingdom in a tax year earlier than the tax year 2017-18, and

was transitionally protected income within the meaning of section 726(7) or 730(7) throughout the tax years 2017-18 to 2024-25 (as that section had effect for those tax years).

(2)In subsection (1), in paragraph (b) of the definition of “transitionally protected income”, “remitted to the United Kingdom” is to be read in accordance with Chapter A1 of Part 14 (read with section 726 or 730 as the case may be).