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Condition C (section 809L(4)ÌýITA 2007 is a stand-alone condition.Ìý

Condition C applies where:Ìý

an individual gives away money or other property (usually offshore)Ìý

the gift is made to someone who is not a ‘relevant personâ€� (seeÌýRDRM33030)Ìý

the gifted money or property is, or derives from, the individual’s foreign income or chargeable gainsÌý

the individual or a relevant person still enjoys, directly or indirectly, the gift, or something derived from it (termed ‘qualifying propertyâ€�- seeÌýRDRM33260) in the UK because:Ìý

the qualifying property is brought to, received or used in the UK and either the property is enjoyed, or as a result a benefit is enjoyed by a relevant personÌý

the qualifying property is used as consideration for a service enjoyed in the UK by a relevant personÌý

the qualifying property is used outside the UK, directly or indirectly, and as a result a benefit is enjoyed in the UK by a relevant personÌýÌý

the qualifying property is used outside the UK, directly or indirectly, in respect of a relevant debtÌý

To note, the enjoyment of a benefit as a result of qualifying property being brought to, received or used in the UK, and the enjoyment of a benefit as a result of qualifying property being used outside the UK, applies to remittances on or after 6 April 2025.ÌýÌýÌý

This kind of arrangement is sometimes referred to as ‘offshore alienationâ€�, and Condition C ensures that foreign income or gains are still taxable if there is enjoyment by a relevant person, notwithstanding any alienation that the individual may have attempted to effect in respect of their foreign income and gains.ÌýÌý

Where Condition C applies, the individual’s foreign income or chargeable gains are treated as remitted to the UK by the individual, and theyÌýare taxable on that remittance. In seeking to establish whether there is a remittance it may also be necessary to consider whether enjoyment of the property or service or an associated benefit by a relevant person is to be disregarded on the basis that the enjoyment is no more than incidental. Also refer to RDRM33270.ÌýÌý

Note 1: The rest of the examples in this chapter are designed simply to illustrate the basic principles. The examples refer to ‘remittancesâ€� of identifiable forms of income but in practice you may also have to consider the mixed fund rules in order to identify what has been remitted - refer to RDRM35000.ÌýÌý

Note 2: Also the examples, and these Chapters use the phrase remittance of ‘foreign chargeable gainsâ€�, or refer to such gains being ‘remittedâ€�. This phrase is used throughout as convenient shorthand. Foreign chargeable gains will usually be part of the proceeds from the sale of an asset, which will likely be a mixed fund. You will need to refer to this section together with RDRM35000.ÌýÌý

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