TOCGA 1992 s80

[a160772]

I understand that s80 TOCGA 1992 applies a deemed disposal of trust assets where trustees become non-resident. I am looking to understand whether and to what extent this provision applies where the assets held by the trust are an offshore bond / foreign policy of life insurance covered by Part 4 of the IT(TAOI)A 2005 under which any gain would normally be subject to income tax rather than capital gains.

[a160772]

I am going to have a go at trying to answer my own question. Section 80(2) of TOCGA 1992 states that upon trustees becoming non-resident there is a disposal "for the purposes of this Act". S.210 of the act suggests (I think) that in the event of a disposal there would be no chargeable gain for the type of asset in question (which I understand is instead taxed as income under IT(TAOI)A 2005). Given the words "for the purposes of this Act" in s80, I do not think a deemed disposal under TOCGA 1992 would trigger a disposal / chargeable event for the purposes of IT(TAOI)A 2005.

Does anyone have any comments / input on the above?

[maths]

S80 is not of application as no chargeable gain accrues on the disposal of or of an interest in, the rights under any such policy of assurance or contract (except where the person making the disposal is not the original beneficial owner and acquired the rights or interest for a consideration in money or money’s worth).

Income tax applies to "chargeable event gains" (not a disposal of the policy itself) eg maturity; surrender.