Income Tax Act 2007 section 732

Non-transferors receiving a benefit as a result of relevant transactions

Section 732 sets out the circumstances in which a UK-resident individual who is not the person who made the original transfer of assets abroad may nevertheless be treated as having taxable income when they receive a benefit funded by those transferred assets.

• The section applies where a relevant transfer of assets abroad has occurred and a UK-resident individual receives a benefit in a tax year funded from those transferred assets or from assets arising through associated operations.
• The individual caught by this section must not already be liable to income tax on the transfer under section 720 (the "power to enjoy" charge) or section 727 (the "capital sums" charge), even disregarding the protective provisions for non-UK domiciled individuals in sections 726 and 730.
• The individual must also not be liable to income tax on the benefit under any other provision apart from section 731 itself, and apart from the settlements anti-avoidance rules in sections 643A, 643J and 643L of ITTOIA 2005.
• Where all these conditions are met, income is treated as arising to the individual for the tax year as determined by section 733, which also specifies the amount of income so treated.