Income Tax Act 2007 section 809N

Section 809L: gift recipients, qualifying property and enjoyment

Section 809N defines who counts as a "gift recipient", what "qualifying property" means, and when a relevant person's enjoyment of property, benefits or services can be disregarded, all for the purpose of determining whether foreign income or gains are treated as remitted to the UK under Condition C of section 809L.

• A gift recipient is a non-relevant person who receives money or property from the individual that is, or derives from, the individual's foreign income or chargeable gains — but they lose that status if they later become a relevant person.
• A gift is made when property is disposed of for no consideration or for less than arm's length value; where some consideration is paid, only the excess over that consideration counts as the gift, and gift treatment still applies even if the individual retains an interest in, or can benefit from, the property.
• Qualifying property covers the gifted property itself, anything derived from it, and any other property dealt with in connection with Condition C where the dealing relates to, or facilitates, the gift — including property the individual does not own but can benefit from through an interest, right or arrangement.
• A relevant person's enjoyment of property, a benefit or a service is disregarded where it is enjoyed virtually to the entire exclusion of all relevant persons, where the benefit enjoyed by relevant persons is no more than negligible, where full consideration is paid for the enjoyment, or where the enjoyment is on the same terms as for the general public.