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| | “700A | Employment-related securities etc: remittance basis |
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| | (1) | This section applies if— |
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| | (a) | section 698 or 700 applies, and |
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| | (b) | part or all of the amount that counts as employment income is |
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| | foreign securities income or is likely to be foreign securities |
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| | |
| | (2) | The amount of the payment treated under section 696 as made is |
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| | (a) | the amount that, on the basis of the best estimate that can |
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| | reasonably be made, is likely to count as employment income, |
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| | (b) | the amount that, on the basis of such an estimate, is likely to |
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| | be foreign securities income. |
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| | (3) | References in this section to “foreign securities income” are to income |
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| | that is foreign securities income for the purposes of section 41A.”’. |
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| Schedule 7, page 176, line 40, leave out ‘8(2)’ and insert ‘8’. |
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| Schedule 7, page 176, line 41, leave out from ‘plan),’ to end of line 42 and insert |
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| ‘for sub-paragraph (2) substitute— |
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| | “(2) | An employee is a UK resident taxpayer if— |
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| | (a) | the employee’s earnings from the employment by reference |
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| | to which the employee meets the employment requirement |
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| | are (or would be if there were any) general earnings to |
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| | which section 15 applies (earnings for year when employee |
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| | |
| | (b) | those general earnings are (or would be if there were any) |
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| | earnings for a tax year in which the employee is ordinarily |
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| | resident in the United Kingdom.”’. |
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| Schedule 7, page 176, line 43, leave out ‘6(2)(c)’ and insert ‘6(2)’. |
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| Schedule 7, page 176, line 44, leave out from ‘scheme),’ to end of line 45 and insert |
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| ‘for paragraph (c) substitute— |
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| | “(c) | E’s earnings from the office or employment within |
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| | paragraph (a) are (or would be if there were any) general |
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| | earnings to which section 15 applies (earnings for year |
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| | when employee UK resident), |
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| | (ca) | those general earnings are (or would be if there were any) |
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| | earnings for a tax year in which E is ordinarily resident in |
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| | the United Kingdom, and”.’. |
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| Schedule 7, page 178, line 2, at end insert ‘where the source ceased after 5 April |
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| Schedule 7, page 178, leave out lines 40 to 45 and insert— |
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| | ‘(1) | Deductions are allowed from the income mentioned in section 832(2) where— |
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| | (a) | the income is from a trade, profession or vocation carried on outside the |
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| | (b) | the income is overseas property income. |
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| | (2) | In the case of section 832B(1)(a) the same deductions are allowed as are allowed |
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| | under the Income Taxes Acts where the trade, profession or vocation is carried |
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| | out in the United Kingdom. |
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| | (3) | In the case of section 832B(1)(b) the same deductions are allowed as are allowed |
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| | under the Income Taxes Acts where the property business is carried on overseas |
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| | and taxed on the arising basis.”’. |
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| Schedule 7, page 180, line 25, at end insert— |
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| | ‘(3A) | Sections 42 and 43 of the Management Act (procedure and time limit |
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| | for making claims), except section 42(1A) of that Act, apply in |
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| | relation to an election under this section as they apply in relation to a |
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| Schedule 7, page 182, line 40, at end insert— |
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| | ‘58A | In section 119A (increase in expenditure by reference to tax charged in relation |
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| | to employment-related securities), after subsection (5) insert— |
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| | “(5A) | See also section 119B (unremitted foreign securities income).” |
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| | 58B | After that section insert— |
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| | “119B | Section 119A: unremitted foreign securities income |
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| | (1) | For the purposes of section 119A reduce the amount that counts as |
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| | employment income by so much of that amount (if any) as is |
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| | unremitted foreign securities income. |
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| | (2) | In this section “unremitted foreign securities income” means income |
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| | (a) | is foreign securities income for the purposes of section 41A of |
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| | ITEPA 2003 (employment income from ERS charged on |
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| | (b) | has not been remitted to the United Kingdom by the end of the |
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| | tax year in which the disposal mentioned in section 119A(1) |
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| | (3) | The following provisions apply if any of the unremitted foreign |
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| | securities income is remitted to the United Kingdom after the end of |
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| | the tax year referred to in subsection (2)(b). |
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| | (4) | The person liable for the capital gains tax on any chargeable gains |
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| | arising on the disposal may make a claim for section 119A(2) to have |
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| | effect as if the remitted income had been remitted before the end of |
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| | (5) | All adjustments (by way of repayment of tax, assessment or otherwise) |
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| | are to be made which are necessary to give effect to a claim under |
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| | (6) | Those adjustments may be made at any time, despite anything to the |
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| | contrary in any enactment relating to capital gains tax.”’. |
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| Schedule 7, page 184, line 6, leave out paragraph 70. |
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| Schedule 7, page 184, line 20, leave out paragraph 73. |
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| Schedule 7, page 184, line 35, leave out ‘and 32’ and insert ‘to 32, 34C and 58B’. |
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| Schedule 7, page 184, line 37, leave out ‘2008’ and insert ‘2009’. |
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| Schedule 7, page 184, line 37, at end insert ‘(except employment-related securities |
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| acquired pursuant to a securities option acquired before 6 April 2008).’. |
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| Schedule 7, page 184, line 39, leave out ‘2008-09’ and insert ‘2009-10’. |
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| Schedule 7, page 184, line 39, at end insert ‘, except for the amendment made by |
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| paragraph 1 to insert a new section 809G in Part 14 of ITA 2007, which has effect for the |
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| tax year 2008-09 and subsequent tax years.’. |
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| Schedule 7, page 186, line 25, at end insert— |
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| | ‘(6) | In this paragraph “property” does not include money. |
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| | (7) | “Money” has the same meaning as in section 809U of ITA 2007.’. |
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| Schedule 7, page 187, leave out lines 1 to 9 and insert ‘, and |
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| | (b) | before 6 April 2008 the money was received in the United Kingdom.’. |
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| Schedule 7, page 187, leave out lines 1 to 3 and insert— |
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| | ‘(b) | the loan was made for the purpose of enabling the individual to— |
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| | (i) | acquire an interest in residential property in the United Kingdom, |
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| | (ii) | carry out a remortgaging exercise with respect to residential |
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| | property in the United Kingdom, or |
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| | (iii) | furnish, decorate, repair or enhance a residential property in the |
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| Schedule 7, page 187, line 6, leave out from ‘money’ to ‘and’ in line 7 and insert |
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| ‘for any of the purposes referred to in subsection (1)(b),’. |
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| Schedule 7, page 187, line 10, leave out ‘Relevant foreign income’ and insert |
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| Schedule 7, page 187, line 10, leave out ‘Relevant foreign income’ and insert |
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| ‘Foreign income and gains’. |
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| Schedule 7, page 187, leave out lines 13 to 21. |
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| Schedule 7, page 187, leave out lines 13 to 19. |
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| Schedule 7, page 187, line 17, at end insert ‘or |
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| | (d) | the interest ceases to be owned by the individual,’. |
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| Schedule 7, page 187, line 19, at end insert— |
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| | (a) | before 12 March 2008, money was lent to the individual outside the |
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| | United Kingdom (“the subsequent loan”), |
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| | (b) | the subsequent loan was made for the purpose of enabling the |
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| | (i) | the loan mentioned in sub-paragraph (1), or |
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| | (ii) | another loan in relation to which sub-paragraphs (2) and (3) |
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| | apply (by virtue of this sub-paragraph), |
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| | | and for no other purpose, and |
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| | (i) | the money was received in the United Kingdom, |
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| | (ii) | the individual used the money to repay the loan referred to in |
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| | paragraph (b)(i) or (ii), and |
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| | (iii) | repayment of the subsequent loan was secured on the interest |
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| | referred to in sub-paragraph (1)(c), |
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| | | sub-paragraphs (2) and (3) apply in relation to the subsequent loan (and for this |
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| | purpose references there to the debt or the loan are to be read as references to |
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| Schedule 7, page 187, line 21, at end insert— |
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| | ‘86A (1) | This paragraph applies in relation to employment-related securities if— |
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| | (a) | the date of the acquisition is on or after 6 April 2008 and on or before |
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| | (b) | Chapter 2 of Part 7 of ITEPA 2003 (restricted securities) applies in |
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| | relation to the securities by virtue only of amendments made by this |
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| | |
| | (2) | Section 431 of ITEPA 2003 (election for full or partial disapplication of |
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| | Chapter) has effect in relation to the employment-related securities as if in |
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| | subsection (5)(b) for “more than 14 days after the acquisition” there were |
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| | substituted “after 14 August 2008”.’. |
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| Schedule 7, page 187, line 31, at end insert— |
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| | ‘(1A) | In subsection (1), after paragraph (a) insert— |
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| | “(aa) | any reference to anything accruing is to be read as a reference |
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| | to it arising (and similar references are to be read |
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| Schedule 7, page 187, line 32, leave out ‘(4)’ and insert ‘(5)’. |
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| Schedule 7, page 187, line 33, leave out from beginning to end of line 17 on page |
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| | (a) | offshore income gains arise to the trustees of a settlement in a |
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| | (b) | section 87 of the 1992 Act (gains of non-resident settlements) |
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| | applies to the settlement for that year, |
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| | | the OIG amount for the settlement for that year is the amount of the |
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| | (3) | Sections 87, 87A, 87C to 90 and 96 to 98 of, and Schedule 4C to, the |
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| | 1992 Act apply in relation to OIG amounts as if— |
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| | (a) | references to section 2(2) amounts (except those in paragraph |
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| | 7B(2)(b) and (4) of Schedule 4C) were to OIG amounts, |
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| | (b) | references to chargeable gains (except the one in paragraph |
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| | 1(5) of Schedule 4C) were to offshore income gains, |
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| | (c) | references to anything accruing were to it arising (and similar |
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| | references, except the one in paragraph 1(5) of Schedule 4C, |
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| | were read accordingly), and |
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| | (d) | sections 87(4), 88(2) to (5), 89(4) and 97(6) and paragraphs |
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| | 1(3A), 3 to 7, 8AA, 12 and 13 of Schedule 4C were omitted. |
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| | (4) | Section 87A of the 1992 Act applies for a tax year by virtue of |
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| | subsection (3) before it applies for that year otherwise than by virtue |
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| | (5) | If, by virtue of subsection (1) or (3), offshore income gains are treated |
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| | as arising to a person, for the purposes of section 761 as it applies in |
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| | relation to the offshore income gains treat the person as having made |
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| | the disposal in question.’. |
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| Schedule 7, page 188, line 18, leave out from ‘(6)’ to end and insert ‘— |
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| | (a) | for “subsection (2) above” substitute “(3)”, |
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| | (b) | for “accrued” substitute “arisen”, and |
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| | (c) | omit “Chapter 2 of Part 13 of ITA 2007 or”.’. |
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| Schedule 7, page 188, leave out line 20 and insert— |
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| | ‘“762ZA | Offshore income gains: application of transfer of assets abroad |
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| | (1) | Chapter 2 of Part 13 of ITA 2007 (transfer of assets abroad) applies in |
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| | relation to an offshore income gain arising to a person resident or |
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| | domiciled outside the United Kingdom (and not resident or ordinarily |
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| | resident in the United Kingdom) as if the offshore income gain were |
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| | income becoming payable to the person. |
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| | (2) | Income treated as arising under that Chapter by virtue of subsection |
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| | (1) is regarded as “foreign” for the purposes of section 726, 730 or 735 |
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| | (3) | Subsection (1) does not apply in relation to an offshore income gain if |
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| | (and to the extent that) it is treated, by virtue of section 762(1), as |
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| | arising to a person resident or ordinarily resident in the United |
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| | |
| | (4) | The following provisions apply if section 762(2) applies in relation to |
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| | an offshore income gain (“the relevant offshore income gain”). |
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| | |
| | (a) | by virtue of section 762(3) an offshore income gain is treated |
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| | as arising in a tax year to a person resident or ordinarily |
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| | resident in the United Kingdom, and |
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| | (b) | it is so treated by reason of the relevant offshore income gain |
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| | |
| | | for that and subsequent tax years subsection (1) does not apply in |
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| | relation to the relevant offshore income gain (or that part). |
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| | (6) | If, by virtue of subsection (1) as it applies in relation to the relevant |
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| | offshore income gain, income is treated under Chapter 2 of Part 13 of |
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| | ITA 2007 as arising in a tax year, reduce (with effect from the |
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| | following tax year) the OIG amount in question by the amount of the |
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| | 762ZB | Income treated as arising under section 761(1): remittance basis’. |
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| Schedule 7, page 188, leave out lines 27 to 32 and insert— |
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| | ‘(2) | Treat the income as relevant foreign income of the individual.’. |
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|