Income Tax (Trading and Other Income) Act 2005

468Non-UK resident trustees and foreign institutionsU.K.

(1)This section applies if a gain is treated as arising under this Chapter and either—

(a)trustees who are non-UK resident would be liable for tax in respect of the gain as a result of section 467 if the trustees were UK resident immediately before the chargeable event in question occurs, or

(b)immediately before that event occurs—

(i)a foreign institution beneficially owns a share in the rights,

(ii)the rights are held for the purposes of a foreign institution, or

(iii)a share in them is held as security for a foreign institution's debt.

[F1(2)Chapter 2 of Part 13 of ITA 2007 (which prevents avoidance of tax where a UK resident individual benefits from a transfer of assets) applies with the modifications specified in subsection (3) or (4).]

(3)In a case within subsection (1)(a), [F2Chapter 2 of Part 13 of ITA 2007 applies] as if—

(a)the gain were income becoming payable to the trustees, and

(b)that income arose to the trustees in the tax year in which the gain arises.

(4)In a case within subsection (1)(b), [F2Chapter 2 of Part 13 of ITA 2007 applies] as if—

(a)the gain were income becoming payable to the institution, and

(b)that income arose to the institution in the tax year in which the gain arises.

(5)In this Chapter “foreign institution” means a company or other institution resident or domiciled outside the United Kingdom.

(6)If there has been a surrender or assignment of only a part of or share in rights under the policy or contract, the references in this section to those rights are references to that part or share.

[F3(7)This section does not apply if someone is liable under section 465B in respect of the gain.]