Income Tax Act 2007 section 725A

Recovery of tax paid as a result of section 721

Section 725A allows an individual who has been taxed under the transfer of assets abroad rules (section 721) to recover the tax paid from the overseas person who holds the income.

• Where an individual pays tax arising from a charge under section 721 (the "power to enjoy" rule for transfer of assets abroad), they have a legal right to recover that tax from the person abroad.
• To assist with recovery, the individual can request a certificate from HMRC confirming key details of the tax charge.
• The certificate must specify the tax year in which income is treated as arising, the amount of that income, and the amount of tax paid.
• Any certificate issued by HMRC serves as conclusive evidence of the facts it contains, meaning it cannot be disputed in recovery proceedings.