Taxes Consolidation Act 1997 section 807B

Certain transitional arrangements in relation to transfer of assets abroad

Section 807B provides transitional rules for determining whether the "old" or "new" anti-avoidance purpose test applies to transfers of assets abroad, particularly where relevant transactions straddle 1 February 2007.

• Where all relevant transactions pre-date 1 February 2007, the old test in section 806(8) applies; where all post-date that date, the new stricter test in section 806(10) applies.
• Where there is a mix of old and new transactions, the anti-avoidance test is failed if either the old transactions fail the old test or the new transactions fail the new test.
• If only the new test is failed, pre-1 February 2007 income is excluded from the section 806 charge, but may still count as relevant income for section 807A purposes.
• A benefit received in 2007 is reduced, on a time apportionment basis, to exclude the portion enjoyable before 1 February 2007.