Income Tax Act 2007 section 746

Deductions and reliefs where individual charged under section 720 or 727

Section 746 explains how deductions and reliefs are to be determined when an individual is taxed under the transfer of assets abroad rules in section 720 or section 727.

• This section applies when calculating the income tax liability of an individual charged under section 720 (power to enjoy income) or section 727 (receipt of capital sums) of the transfer of assets abroad provisions.
• For the purpose of working out which deductions and reliefs the individual may claim, the individual is treated as if they had actually received the relevant income amount.
• The amount treated as received is the same amount by reference to which income is deemed to arise under section 721 or section 728.
• This ensures that the individual is not disadvantaged in claiming deductions and reliefs merely because the income is a deemed amount rather than an actual receipt.