Income Tax Act 2007 section 735C

Historical operation of section 733C or 733E where remittance basis applied

Section 735C preserves the treatment of income arising under the transfer of assets abroad rules (via onward gifts under sections 733C or 733E) for individuals who used the remittance basis during the tax years 2018-19 to 2024-25, ensuring that such income is classified as relevant foreign income and that the onward payment is linked to that income for remittance basis purposes.

• Applies where income was treated as arising to an individual for any of the tax years 2018-19 to 2024-25 under the onward gift provisions (sections 733C or 733E) and the individual was taxed on the remittance basis for that year
• The income in question is treated as relevant foreign income of the individual, meaning it is only taxable in the UK to the extent it is remitted here
• The onward payment (or the part of it matching the amount of income) is treated as deriving from the income for remittance basis purposes, establishing the necessary link to determine whether and when the income has been remitted
• When applying the relevant foreign income charging rules in section 832 of ITTOIA 2005, paragraph (b) of subsection (2) of that section is disregarded, and references to sections 733C or 733E are to those sections as they had effect for the relevant tax year