BIM35990 - Sale of income by an individual in
exchange for capital: submit to AAG first
Although ICTA88/S775 is rarely invoked, all cases where it is
considered it may apply should be submitted to Anti-Avoidance Group
(AAG) at an early stage and before an assessment is made or a
notice under ICTA88/S778 is issued and in particular where:
- an individual (whether or not domiciled,
resident or ordinarily resident in the UK), carries on an activity
wholly or partly in the UK of any of the kinds referred to in
BIM35960,
and
- the earning capacity of that individual is
enjoyed by some other person,
and
- money or money's worth becomes receivable
in the UK or offshore by the individual or some other person
(whether before or after the income is earned) which is not taxable
in the UK as income; or, after 5 April 1988, if chargeable as CG,
produces a disproportionately small tax liability (either because
of capital loss relief or otherwise).
