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(1)Subsection (2) applies if all or a part of the variable remuneration represented by the allocated profit vests in P at a time when P is carrying on the AIFM trade (whether as a partner in the AIFM firm or otherwise).
(2)The amount given by subsection (5) is treated as a profit of the relevant tax year (see subsection (7)) made by P in the AIFM trade chargeable to income tax under Chapter 2 of Part 2.
(3)Subsection (4) applies if all or a part of the variable remuneration represented by the allocated profit vests in P at a time when P is no longer carrying on the AIFM trade (whether as a partner in the AIFM firm or otherwise).
(4)If this subsection applies—
(a)P is treated as receiving, in the relevant tax year (see subsection (7)), income of the amount given by subsection (5),
(b)income tax is charged under this subsection on that income, and
(c)P is the person liable for that tax.
(5)The amount to be treated as a profit or as income received by P is—
(a)the amount of the allocated profit, or the part of it representing the part of the variable remuneration, net of the income tax for which the AIFM firm is liable by virtue of section 863I in respect of the allocated profit or the part of it, plus
(b)an amount equal to—
(i)so much of the income tax mentioned in paragraph (a) as is paid by the AIFM firm by the time the vesting occurs, or
(ii)if the vesting occurs in the tax year for which the allocated profit is chargeable to tax under Chapter 2 of Part 2 by virtue of section 863I, so much of the income tax mentioned in paragraph (a) as is paid by the AIFM firm.
(6)Further—
(a)P is treated as paying, when the vesting occurs, an amount of income tax equal to the amount given by subsection (5)(b), and
(b)that amount is accordingly to be taken into account in determining the income tax payable by, or repayable to, P.
(7)“The relevant tax year” is—
(a)if the variable remuneration or the part of it is deferred remuneration, the tax year in which the vesting occurs, or
(b)if the variable remuneration or the part of it is upfront remuneration, the tax year for which the allocated profit would have been chargeable to income tax under Chapter 2 of Part 2 as mentioned in section 863I(1)(b).
(8)Terms used in this section have the same meaning as in the AIFMD remuneration guidelines (see section 863L).
(9)Section 850E (payment from B to other persons after application of section 850C(4) or 850D(4)) is to be ignored for the purposes of this section.]
Textual Amendments
F1Ss. 863H-863L and cross-heading inserted (with effect in accordance with Sch. 17 para. 21 of the amending Act) by Finance Act 2014 (c. 26), Sch. 17 para. 15
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