Paragraph 39

United Kingdom

(1)

Section 732 (deemed income where benefit received) is amended as follows.

(2)

In the heading, for “Individuals” substitute “Non-transferors”.

(3)

In subsection (1)—

(a)

in paragraph (b), for “receives a benefit in a tax year” substitute “who is UK resident for a tax year receives a benefit in that tax year”;

(b)

for paragraph (d) substitute—

“(d)

the individual is not liable to income tax under section 720 or 727 by reference to the transfer and would not be so liable if the effect of sections 726 and 730 were ignored,”.

(4)

Omit subsection (4).