Income Tax Act 2007 section 733

Income charged under section 731

Section 733 provides a six-step method for calculating the amount of income that is treated as arising to a non-transferor individual who has received benefits as a result of a transfer of assets abroad.

• The calculation compares the total value of untaxed benefits the individual has received (in the current and prior years) against the "available relevant income" — being the cumulative income arising to a person abroad that could be used to fund those benefits, after deducting amounts already charged in earlier years and amounts excluded to prevent double taxation.
• The taxable amount for any year is the lower of the total untaxed benefits and the available relevant income, ensuring the individual is never taxed on more than either the benefits received or the offshore income that could fund them.
• Where income treated as arising under this charge was not actually taxed — for example because it was identified as qualifying foreign income on a foreign income claim, or because of the protected foreign-source income rules — it is treated in future years as if it had not been charged, which means it feeds back into the calculation and can support a fresh charge in a later year for the same individual, though it does not reduce available relevant income for other individuals.
• The amount calculated may be reduced where a capital gains tax charge has already arisen on the same benefit (section 734), and special rules apply where the relevant transactions straddle 5 December 2005 (section 740) or where income is exempt under the Finance Act 2025 temporary repatriation facility.