Income Tax (Trading and Other Income) Act 2005 section 714

Exemption of profits from FOTRA securities

Section 714 sets out the conditions under which profits from FOTRA (Free of Tax to Residents Abroad) securities are exempt from income tax, and identifies important exceptions where the exemption does not apply.

• Profits from FOTRA securities are exempt from income tax provided the exemption condition states they are exempt and any conditions of issue for obtaining the exemption are satisfied
• The exemption does not apply to amounts caught by the settlements rules that treat income as belonging to the settlor, or by the anti-avoidance rules on transfers of assets abroad
• These exceptions override whatever the FOTRA security's own exemption condition may say
• Any claim for repayment of tax must still be made within the normal time limit for such claims