Paragraph 43

Section 735A (matching rules) is amended as follows.

In subsection (1), for paragraph (b) substitute—

“(b)

deduct from those benefits any benefit so far as—

(i)

chargeable gains (or offshore income gains) are treated as mentioned in section 734(1)(d) as accruing by reference to the benefit,

(ii)

income is treated as mentioned in section 735AG(1)(b) as arising by reference to the benefit under section 643A, 643J or 643L of ITTOIA 2005 (settlements: benefits charge), or

(iii)

income is treated as arising by reference to the benefit under section 732(2) and that income is identified in a foreign income claim,”.

in subsection (6), for “the individual, or as a result of section 733A another person” substitute “a person”.