Income Tax Act 2007 section 809YE

Exception to section 809Y: gifts to the nation

Section 809YE provides an exception to the rule that treats property as remitted to the UK when it ceases to be exempt property, where that property has been donated to the nation under the gifts to the nation scheme.

• Property that ceases to be exempt is normally treated as remitted to the UK under section 809Y, triggering a potential tax charge for remittance basis users.
• This section carves out an exception where the property has been donated as a "gift to the nation" under the scheme set out in Schedule 14 to Finance Act 2012, provided the donation occurs no later than the time the property loses its exempt status.
• Where this exception applies, the property continues to be treated as not remitted to the UK, even though it no longer satisfies the conditions for exempt property status.
• The practical effect is that remittance basis users can donate formerly exempt property to the nation without incurring a deemed remittance and the associated tax liability.