Income Tax Act 2007 section 733D

Cases where deemed income attributed to recipient of onward gift

Section 733D deals with situations where an onward gift is made to a person who either is not UK resident or is a UK resident using the remittance basis, allowing the onward gift rules to apply again in a chain of payments.

• Where an onward payment is made to a non-UK resident subsequent recipient, the payment is treated as if it were income arising to that recipient under section 732, so the onward gift rules can be re-applied
• Where an onward payment is made to a UK-resident subsequent recipient who uses the remittance basis and none or only part of the payment is remitted to the UK, the unremitted portion is similarly treated as income arising under section 732
• Where only part of an onward payment is remitted to the UK, section 733D charges the remitted part whilst section 733C ensures the unremitted part remains subject to the onward gift rules going forward
• When the onward gift rules apply in a chain (i.e. a second or subsequent onward payment), certain conditions in section 733B are modified so that references to the original benefit are replaced with references to the previous onward payment