Income Tax Act 2007

731Charge to tax on income treated as arising under section 732U.K.

(1)Income tax is charged on income treated as arising to an individual under section 732 ([F1individuals] receiving a benefit as a result of relevant transactions).

[F2(1A)But where the individual is non-UK resident for the tax year in which a benefit is received, there is a charge to tax under this section on any matched deemed income—

(a)only so far as that matched deemed income would under section 735A (if it applied also for this purpose) be matched with an amount of relevant income that is protected income for the purposes of section 733A(1)(b)(i) (see sections 721(3BA) and 728(1B)), and

(b)only if—

(i)the individual is the settlor of the settlement concerned, or

(ii)the benefit is received by the individual at a time when the individual is a close member of the family of the settlor of that settlement.

(1B)For the purposes of subsection (1A)—

(a)“matched deemed income” means income which—

(i)is treated by section 732 as arising to the individual, and

(ii)would, if section 735A applied also for this purpose, be matched under that section with the benefit, and

(b)a person is a close member of the family of the settlor of a settlement if the person is—

(i)the settlor's spouse or civil partner, or

(ii)a child of the settlor, or of a person within sub-paragraph (i), if the child has not reached the age of 18;

and section 733A(7) (persons living together) applies also for the purposes of paragraph (b).]

[F3(1C)Subsection (1A) does not restrict the charge to tax under this section on income treated as arising to the individual by section 733C or 733E (onward gifts: recipient or settlor treated as individual to whom income is treated as arising).]

(2)Tax is charged under this section on the amount of income treated as arising for the tax year.

[F4(2A)But see [F5sections 735, 735B and 735C] (non-UK domiciled individuals to whom remittance basis applies).]

(3)The person liable for any tax charged under this section is the individual to whom the income is treated as arising[F6, but this is subject to section 733A.]

(4)For exemptions from the charge under this section, see sections 736 to [F7742A] (exemptions where no tax avoidance purpose or genuine commercial transaction [F8, etc]).