Income Tax Act 2007 section 729

The capital receipt conditions

Section 729 defines the capital receipt conditions that must be met for an individual to be taxed under the transfer of assets abroad rules when they receive or become entitled to receive a capital sum connected with a relevant transaction.

• The conditions are met if, in the relevant tax year or any earlier year, the individual receives or becomes entitled to receive a capital sum (whether before or after the relevant transfer), and that sum is in any way connected with a relevant transaction.
• A capital sum received as a loan in an earlier year does not trigger the conditions if the loan has been wholly repaid before the start of the relevant tax year.
• A capital sum includes any loan or loan repayment, and any other non-income payment that is not made for full consideration in money or money's worth.
• A sum is treated as received by the individual if another person receives it at the individual's direction or because the individual has assigned their right to receive it.