Upper Tribunal Tax and Chancery Chamber

UT/2022/000154 - [2024] UKUT 00074 (TCC)

Fecha: 13-Feb-2024

The legislation

The legislation

The legislation which is in issue is set out at section 809L Income Tax Act 2007 (“section 809L”). It is common ground that if the Taxpayers’ chargeable gains were “remitted to the United Kingdom” within the meaning of this section, then HMRC’s appeal should be allowed. The provisions relevant to this appeal are as follows:

809L Meaning of “remitted to the United Kingdom”

(1)

An individual's income is, or chargeable gains are, “remitted to the United Kingdom” if—

(a)

conditions A and B are met,

…

(2)

Condition A is that—

(a)

money or other property is brought to, or received or used in, the United Kingdom by or for the benefit of a relevant person, or

(b)

a service is provided in the United Kingdom to or for the benefit of a relevant person.

(3)

Condition B is that—

(a)

the property, service or consideration for the service is (wholly or in part) the income or chargeable gains,

(b)

the property, service or consideration—

(i)

derives (wholly or in part, and directly or indirectly) from the income or chargeable gains, and

(ii)

in the case of property or consideration, is property of or consideration given by a relevant person,

(c)

the income or chargeable gains are used outside the United Kingdom (directly or indirectly) in respect of a relevant debt, or

(d)

anything deriving (wholly or in part, and directly or indirectly) from the income or chargeable gains is used as mentioned in paragraph (c).

…

(7)

In this section “relevant debt” means a debt that relates (wholly or in part, and directly or indirectly) to—

(a)

property falling within subsection (2)(a),

(b)

a service falling within subsection (2)(b),

…

(9)

The cases in which property (including income or chargeable gains) is used in respect of a debt include cases where the property is used to pay interest on the debt.