Introduction Summary
1.Section 26 introduces Schedule 10 which makes changes to the “transfer of assets” anti-avoidance legislation in Chapter 2 of Part 13 of the Income Tax Act (ITA) 2007. This legislation applies to UK resident individuals who have transferred assets so that income has become payable to an overseas person, while the UK resident individual continues to be able to enjoy the income of the person abroad, or receive a capital sum directly or indirectly from the income. The legislation also applies to UK resident individuals who have not made the transfer which results in the income arising to the person abroad, but who can benefit directly or indirectly from the income arising. The changes do two things. They provide a new exemption from charge for “genuine transactions” where European Union treaty freedoms are engaged, and they make a series of other changes to the transfer of assets provisions aimed at clarifying the way certain aspects operate.