Income Tax Act 2007 Schedule 2 paragraph 141

Transfers of assets abroad: meaning of "associated operation" and consideration of associated operations alone

Paragraph 141 of Schedule 2 provides transitional rules limiting how "associated operations" are treated under the transfer of assets abroad provisions for periods before 5 December 2005.

• Before 5 December 2005, income payable to a person abroad solely as a result of associated operations does not count as arising from a "relevant transfer" under section 716
• Before that date, the definition of "associated operation" in section 719 applies without subsection (2), giving it a narrower meaning
• Income that an individual has the power to enjoy solely through associated operations is excluded from the charge under section 721 for the pre-5 December 2005 period
• Income that became the income of a person abroad solely through associated operations is excluded from the capital sums charge under section 728 for the same period

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