Recent cases on the transfer of assets abroad legislation

The transfer of assets abroad code (TOAA) is a wide-ranging anti-avoidance measure that taxes UK-resident individuals on income earned by non-resident entities. It has been part of income tax since 1936 but despite its long pedigree there have been relatively few cases delineating its parameters. HMRC’s record with TOAA is also rather mixed. It has been invoked in circumstances in which it has no proper application with it has to be said somewhat unjust results. So two recent decisions are a welcome addition to the jurisprudence.

Outline

Reflecting amendments over the years particularly in ITA 2007 Pt 13 ch 2 which rewrote and expanded provisions previously in TA 1988 there are two branches to the code.

The first imposes liability to income tax on an individual (together with any spouse or civil partner) who...