Section 809N | Section 809L: gift recipients, qualifying property and enjoyment ^F1

(1)This section applies for the purposes of determining whether or not income or chargeable gains of an individual are remitted to the United Kingdom by virtue of condition C in section 809L.^F1

(2)A “gift recipient” means a person, other than a relevant person, to whom the individual makes a gift of money or other property that—^F1

(a)is income or chargeable gains of the individual, or^F1

(b)derives (wholly or in part, and directly or indirectly) from income or chargeable gains of the individual.^F1

(3)The question of whether or not a person is a relevant person is to be determined by reference to the time when a gift is made.^F1

(4)But, if a person to whom a gift is made subsequently becomes a relevant person, the person ceases to be a gift recipient.^F1

(5)The individual “makes a gift of” property if the individual disposes of the property—^F1

(a)for no consideration, or^F1

(b)for consideration less than the full consideration in money or money's worth that would be given if the disposal were by way of a bargain made at arm's length;^F1

but, in a case falling in paragraph (b), the individual is to be taken to make a gift of only so much of the property as exceeds the consideration actually given.

(6)A reference to the individual making a gift of property includes a case where—^F1

(a)the individual retains an interest in the property, or^F1

(b)an interest, right or arrangement enables or entitles the individual to benefit from the property.^F1

(7)“Qualifying property”, in relation to a gift recipient, is—^F1

(a)the property that the individual gave to the gift recipient,^F1

(b)anything that derives (wholly or in part, and directly or indirectly) from that property, or^F1

(c)any other property, but only if it is dealt with as mentioned in section 809L(4)(a), (b) , (ba) or (c) by virtue of an operation which is effected—^F1F2

(i)with reference to the gift of the property to the gift recipient, or^F1

(ii)with a view to enabling or facilitating the gift of the property to the gift recipient to be made.^F1

(8)In subsection (7)—^F1

(a)the reference in paragraph (b) to anything deriving from property, and^F1

(b)the reference in paragraph (c) to other property,^F1

includes a thing, or property, that does not belong to the individual but which the individual is enabled or entitled to benefit from by virtue of any interest, right or arrangement.

(9)Enjoyment by a relevant person of property , a benefit or a service is to be disregarded in any of these cases—^F1F3

(a)in the case of enjoyment of property or a service, if the property or service is enjoyed virtually to the entire exclusion of all relevant persons,^F1F4

(aa)in the case of enjoyment of a benefit—^F1F5

(i)if the qualifying property being dealt with as mentioned in section 809L(4)(a) or (ba) results in a benefit being enjoyed by relevant persons and persons who are not relevant persons, and^F1F5

(ii)the enjoyment by all relevant persons is no more than negligible,^F1F5

(b)if full consideration in money or money's worth is given by a relevant person for the enjoyment, or^F1

(c)if the property , benefit or service is enjoyed by relevant persons in the same way, and on the same terms, as it may be enjoyed by the general public or by a section of the general public.^F1F6