Income Tax Act 2007 section 924

Power to reduce section 923 liability

Section 924 supplements section 923 by providing HMRC with the power to reduce the tax liability that would otherwise arise under section 923 in respect of non-qualifying distributions received by the trustees of a non-qualifying offshore fund.

• Where a tax charge arises under section 923 on trustees of a non-qualifying offshore fund receiving a non-qualifying distribution, HMRC may reduce the amount of that liability.
• This power allows HMRC to take account of circumstances where the full section 923 charge would be excessive or unjust, providing a measure of flexibility in the application of the rules.
• The provision originated from paragraph 4(3B) of Schedule 23A to the Income and Corporation Taxes Act 1988 (ICTA), carried forward into the Income Tax Act 2007 as part of the tax law rewrite project.
• The section was subsequently amended by Finance Act 2013 (Schedule 1, paragraph 52 and Schedule 29, paragraph 25) to reflect wider changes to the offshore funds legislation.

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