Income Tax Act 2007 section 809T

Foreign chargeable gains accruing on disposal made otherwise than for full consideration

Section 809T deals with the treatment of foreign chargeable gains where an individual disposes of an asset for less than its market value, ensuring the asset is traced back to those gains for the purposes of the remittance basis rules.

• Applies where an individual realises foreign chargeable gains on the disposal of an asset
• Triggered when the consideration received is less than the market value of the asset at the time of disposal
• The asset itself is treated as deriving from the chargeable gains for the purposes of the remittance basis chapter
• This tracing rule prevents individuals from circumventing remittance basis charges by transferring assets at undervalue