Income Tax Act 2007 section 133

Transfers of assets abroad: non-transferors receiving benefit – exclusion of income arising before 10 March 1981

Section 133 clarifies the time limits that apply when non-transferors are taxed on benefits received from overseas asset transfers, specifically excluding pre-1981 income from the charge.

• The rules taxing non-transferors who receive benefits from relevant overseas transactions apply regardless of when the original asset transfer took place.
• There is no restriction based on the date of the transfer itself — even very old transfers can give rise to a tax charge on the benefit recipient.
• However, income that arose before 10 March 1981 is excluded when calculating the amount of income treated as arising to the non-transferor.
• This exclusion applies to the relevant income used to determine the cap on the tax charge, not to the date of the transfer or the date the benefit was received.