The transfer of assets abroad provisions did not apply to taxpayers where a UK company transferred its business to a company in Gibraltar and the taxpayers were shareholders and/or directors of both companies. 

Two of the three appellant taxpayers (and cross-respondents) (SF and AF) were resident and ordinarily resident in the UK. The third (PF) ceased to be UK resident in 2004. The individuals were members of a family that built up a betting business run through a UK company (SJA). The business of SJA was transferred to a company in Gibraltar (SJG) in March 2000. The appellants were shareholders and/or directors of both companies. 

HM Revenue and Customs (HMRC) assessed the taxpayers to income tax on the profits of SJG for the tax years 2000/01 to 2007/08 inclusive, on the basis that the transfer of assets abroad (TOAA) code applied so that they were subject to charge under ICTA 1988, s 739 and ITA 2007, s 720. The taxpayers appealed. <