Introduction Details of the Schedule Special charging rules for savings and investment income
141.Paragraph 83 amends section 368 of ITTOIA so that if income within Part 4 of ITTOIA arises to an individual in the overseas part of a split year it is treated as arising to a non-UK resident. Income arising to a non-resident is generally only chargeable if it is UK source income, but this is subject in particular to the rules for temporary non-residents (see Part 4 of this Schedule).
142.Paragraph 84 amends section 465 of ITTOIA so that, in the case of a split year, the individual is not liable to tax under Chapter 9 of Part 4 on gains arising in the overseas part of the year. But see Part 4 of this Schedule in relation to an individual who is temporarily non-resident.
143.Paragraph 85 amends section 467 of ITTOIA to include an additional absent settlor condition under subsection (4), which is that the gain arises in the overseas part of a split tax year applicable to the individual who created the trusts.
144.Paragraph 86 amends section 528 of ITTOIA to take into account days in the overseas part of a split year as well as days in a full year of non-residence in reducing the amount of the gain to be charged. This section is substituted by Schedule 8 to this Act dealing with chargeable event gains but continues in force for policies not covered by the new section. Accordingly, the amendments made by sub-paragraphs (3) to (6) of paragraph 86 apply to the new section 528 and the amendments made by sub-paragraphs (8) to (10) of paragraph 86 apply to the old section 528. If the period being considered is before 6 April 2013 then the reference to a split year is applied as if it referred to the relevant Extra-Statutory Concession then in force (usually ESC A11) – see paragraph 155.
145.Paragraph 87 amends section 528A of ITTOIA which is inserted by Schedule 8 to this Act dealing with chargeable event gains. It provides relief in respect of a deceased person’s policy corresponding to that for individuals in section 528 of ITTOIA. The amendments correspond to those made by paragraph 86.
146.Paragraph 88 amends section 536 of ITTOIA (as itself amended by Schedule 8 to this Act dealing with chargeable event gains) to reflect the changes made to section 528 of ITTOIA.