INTM602460 - Transfer of assets abroad: Other general provisions: No duplication of charges - changes from 6 April 2013

In order to address some of the issues regarding the potential for double charging, amendments were made to ITA07/S721 and S728 to prevent a charge arising under the transfer of assets income charge if the income is taxed under other provisions. The changes took effect from 6 April 2013.

In situations where the income charge is in point because the individual had power to enjoy, Finance Act 2013 introduced subsection (3C) into ITA07/S721. This prevents the income charge from arising if

• the individual is liable to an income tax charge on the income arising to the person abroad under a provision other than the transfer of assets provisions, and
• the individual has paid all the income tax in respect of the income concerned.

With regards to situations where the income charge is in point because the individual receives or is entitled to receive a capital sum, Finance Act 2013 introduced subsection (2B) into ITA07/S728. This prevents the income charge from arising if

• the individual is liable to an income tax charge on the income arising to the person abroad under a provision other than the transfer of assets provisions, and
• the individual has paid all the income tax in respect of the income concerned.

The changes only relate to income on which the individual is liable to tax under a different provision, so in cases where the income is assessable on another person you will need to consider INTM602320 to INTM602480.