The exemption for genuine transactions relates to an exemption from the transfer of assets abroad (TOAA) rules for transactions with the EU.
The exemption is withdrawn by Finance Bill 2025, following Brexit, from 6 April 20251.
Until 5 April 2025, income is to be left out of account in applying the transfer of assets abroad (TOAA) rules insofar as the chargeable individual satisfies an HMRC officer that the income is attributable to a relevant transaction (see E1.1127) effected on or after 6 April 2012, until 5 April 2025 ,where both conditions (1) and (2) below are met2.
Condition (1) can be set out as a hypothetical question: were the transaction to be considered genuine, viewed objectively and having regard to any arrangements under which it is effected and any other relevant circumstances, would the imposition of tax under the TOAA rules be an unjustified and disproportionate restriction on a freedom protected under a specified EU treaty provision, such as to contravene that treaty provision? If so, then the condition
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Web page updated on 17 Mar 2025 16:19