i6. Acquisition of an asset by a trust

INCOME TAX

Transfer of assets abroad

- Person transferring asset to trust may be making a relevant transfer (even if for consideration)

General rule

- A relevant transfer is a transfer of assets as a result of which (alone or in combination with associated operations), income becomes payable to a person abroad (s.716).

- Accordingly a transfer of assets to a non-resident trust is a relevant transfer.

- See further i1. Creation and addition to trust.

Legislation:

Cases:

HMRC manuals:

Commentary:

Settlements code: attribution of income to settlor

- Acquisition of asset from settlor/spouse for overvalue is capital sum triggering s.633

- Capital sum includes any sum which is not income and not paid for full consideration in money or money's worth (s.634).

Legislation: ITTOIA s.634;