Income Tax Act 2007 section 681DM

Capital sum

Section 681DM defines what counts as a "capital sum" for the purposes of this Chapter, which deals with the transfer of assets abroad.

• A capital sum means any sum of money or anything else of monetary value (money's worth).
• It does not include any amount that is treated as a trading receipt for income tax purposes when calculating profits or losses of a trade, profession or vocation.
• It does not include any amount that is already chargeable to income tax under other provisions listed in section 1016, independently of this Chapter.
• The definition ensures that only genuinely capital amounts are caught by the transfer of assets abroad rules, preventing double counting of amounts already taxed as income.