Search Legislation

Finance Act 2016

Status:

This is the original version (as it was originally enacted).

38Income-based carried interest: persons coming to the UK

(1)In section 809EZA of ITA 2007 (disguised investment management fees: charge to income tax), after subsection (2) insert—

(2A)Subsection (2B) applies instead of subsections (1) and (2) where—

(a)one or more disguised fees arise to an individual in a tax year (“the relevant tax year”) from one or more investment schemes (whether or not by virtue of the same arrangements),

(b)the disguised fees consist of carried interest which is income-based carried interest,

(c)the individual is UK resident in the relevant tax year,

(d)before the relevant tax year, the individual was not UK resident for a period of at least five consecutive tax years (“the period of non-residence”), and

(e)either—

(i)the relevant tax year is the first tax year immediately after the end of the period of non-residence, or

(ii)the relevant tax year is the second, third, or fourth tax year after the end of that period and the individual has been UK resident in all the intervening tax years.

(2B)To the extent that the income-based carried interest arises by virtue of pre-arrival services, the individual is liable for income tax for the relevant tax year in respect of it as if—

(a)in relation to pre-arrival services performed in the United Kingdom—

(i)the individual were carrying on a trade for the relevant year consisting of the performance of those services,

(ii)the income-based carried interest, so far as arising by virtue of those services, were profits of that trade, and

(iii)the individual were the person receiving or entitled to those profits, and

(b)in relation to pre-arrival services performed outside the United Kingdom—

(i)the individual were carrying on a trade for the relevant tax year consisting of the performance of those services,

(ii)the income-based carried interest, so far as arising by virtue of those services, were profits of that trade, and

(iii)the individual were the person receiving or entitled to those profits.

(2C)In subsection (2B) “pre-arrival services” means investment management services performed before the end of the period of non-residence.

(2)The amendment made by this section has effect in relation to sums of carried interest arising on or after 6 April 2016 (whenever the arrangements under which the sums arise were made).

Back to top

Options/Help

Print Options

You have chosen to open The Whole Act

The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open The Whole Act as a PDF

The Whole Act you have selected contains over 200 provisions and might take some time to download.

Would you like to continue?

You have chosen to open The Whole Act without Schedules

The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open The Whole Act without Schedules as a PDF

The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download.

Would you like to continue?

You have chosen to open the Whole Act

The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open the Whole Act without Schedules

The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open Schedules only

The Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

Close

Legislation is available in different versions:

Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.

Original (As Enacted or Made):The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.

Close

Opening Options

Different options to open legislation in order to view more content on screen at once

Close

More Resources

Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as enacted version that was used for the print copy
  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • correction slips
  • links to related legislation and further information resources
Close

More Resources

Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as enacted version that was used for the print copy
  • correction slips

Click 'View More' or select 'More Resources' tab for additional information including:

  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • links to related legislation and further information resources