Income Tax Act 2007 section 728

Individuals receiving capital sums as a result of relevant transactions

Section 728 sets out when a UK-resident individual who receives a capital sum connected to a transfer of assets abroad is treated as having taxable income, and how the amount of that deemed income is determined.

• Income is treated as arising to a UK-resident individual where income has accrued to a person abroad through a relevant transfer or associated operations, and the capital receipt conditions are satisfied
• The amount of deemed income equals the income of the person abroad, but may be reduced where a controlled foreign company is involved
• The charge does not apply if the individual is already liable for income tax on the same overseas income under another provision and has paid that tax in full
• It does not matter whether the individual was UK resident at the time of the original transfer, or whether tax avoidance was a purpose of that transfer

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