INTM601460 - Transfer of assets abroad: »Ê¹ÚÌåÓýapp benefits charge: General provisions

Prior to 6 April 2007 the benefits charge was contained in ICTA88/S740, with ICTA88/S740(2) introducing the charge by treating an amount as income of the individual for the particular tax year and charging that amount to income tax for that year.

»Ê¹ÚÌåÓýapp charge is now headed, “Charge where benefit receivedâ€� and is contained in ITA07/S731 â€� 735C.

Under these provisions:

  • income tax is charged on income treated as arising to an individual by the provisions (INTM601480)
  • tax is charged on the amount of income treated as arising for the tax year (INTM601740)
  • the person who is liable to the charge is the individual to whom the income is treated as arising (INTM601680).

An exemption from tax is provided where conditions are met: see INTM602620 onwards.

For the benefits charge there is no equivalent to the ‘same deductions and reliefs� clause that operates for the income charge (INTM600620).