INTM602100 - Transfer of assets abroad: Non-domiciled individuals: The benefits charge - introduction

The basic provisions that describe whether an individual is liable to a benefits charge are set out in INTM601400 onwards.

This part of the manual proceeds on the basis that a potential charge is established, and it considers the possible effect on that charge if the individual is not UK domiciled.

Whether an individual is non-UK domiciled is not a matter for this manual.

This part of the manual looks at the effect of being non-UK domiciled on the benefits charge in three stages:

• the position up to 5 April 2005 under ICTA88/S740 - before the introduction of the Income Tax (Trading and Other Income) Act 2005 (ITTOIA)
• the position between 6 April 2005 and 5 April 2008 under ICTA88/S740 - after the introduction of ITTOIA and the effect of the introduction of Income Tax Act 2007
• the position from 6 April 2008 under ITA07/S735 - after changes brought in by Finance Act 2008

From 6 April 2017 special rules have been introduced which bring non-UK domiciled settlors of certain non-resident trusts within the scope of the benefits charge. For details of the treatment of such settlements: see INTM603180 onwards.

Any issues concerning whether an individual is UK resident or UK domiciled should be determined from the separate guidance on those subjects or by consulting the relevant technical specialist in Personal Tax International, Liverpool: see INTM604440.