Sections 554R and 554Z17(2) ITEPA 2003

Suppose that a sum of money or asset is held, and another sum of money or asset is acquired out of it.

Then, if the specified conditions are met, the latter sum of money or asset will not itself give rise to Part 7A income upon its acquisition.

Scenario envisaged by Section 554R

There are four conditions for Section 554R to apply. They are bulleted below.

A sum of money or asset (‘sum or asset S’) is held by or on behalf of a person (‘P’).

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