Offshore income gains and profits are not protected

The taxpayer was resident in the UK and deemed domiciled since 6 April 2018. This was due to ITA 2007 s 835BA (introduced by FA 2017) which specified that with effect from 6 April 2018 an individual who would otherwise be treated as non-UK domiciled in a particular tax year would be deemed to be UK domiciled in that year if they had been UK resident for at least 15 of the 20 tax years preceding that tax year.

She was the settlor of four trusts which gave rise to offshore income gains (OIGs) and accrued income profits (AIPs) which she disclosed in her tax returns.

After an enquiry HMRC issued closure notices assessing her to tax on the OIGs and AIPs under the transfer of assets abroad rules (ITA 2007 s 720).

The taxpayer appealed. She said the OIGs and AIPs were relevant...