Alarm has arisen over suggestions that a change introduced in the Finance Act will bring into charge to tax remittances of income or gains when money has been remitted by a person who is not resident but for some reason is taken out of the UK and brought back in after they have become resident. This does happen.
The prevailing view has been that ITA 2007 s 809P(12) excludes this possibility:
‘If the amount remitted (taken together with any amount previously remitted) would otherwise exceed the amount of the income or chargeable gains the amount remitted is limited to the amount which (when taken together with any amount previously remitted) is equal to the amount of the income or chargeable gains.’
HMRC say that the reference in s 809P(12) to remittances is referring only to taxable remittances. This view is very difficult to follow –...
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Alarm has arisen over suggestions that a change introduced in the Finance Act will bring into charge to tax remittances of income or gains when money has been remitted by a person who is not resident but for some reason is taken out of the UK and brought back in after they have become resident. This does happen.
The prevailing view has been that ITA 2007 s 809P(12) excludes this possibility:
‘If the amount remitted (taken together with any amount previously remitted) would otherwise exceed the amount of the income or chargeable gains the amount remitted is limited to the amount which (when taken together with any amount previously remitted) is equal to the amount of the income or chargeable gains.’
HMRC say that the reference in s 809P(12) to remittances is referring only to taxable remittances. This view is very difficult to follow –...
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