Part 14

Income tax liability: miscellaneous rules
Chapter 1

Limits on liability to income tax of non-UK residents

The independent investment manager conditions

Investment managers: the 20% rule
819
1
The requirements of the 20% rule are met if conditions A and B are met.
2
Condition A is that in relation to a qualifying period it has been or is the intention of the investment manager and the persons connected with the investment manager that at least 80% of the non-UK resident's relevant disregarded income should consist of amounts to which none of them has a beneficial entitlement.
3
Condition B is that, so far as there is a failure to fulfil that intention, that failure—
a
is attributable (directly or indirectly) to matters outside the control of the investment manager and persons connected with the investment manager, and
b
does not result from a failure by any of them to take such steps as may be reasonable for mitigating the effect of those matters in relation to the fulfilment of that intention.
4
This section needs to be read with—
- section 820 (meaning of “qualifying period”),
- section 821 (meaning of “relevant disregarded income”), and
- section 822 (meaning of “beneficial entitlement”).
Pt. 14 Ch. 1 excluded by 2005 c. 5, s. 608X(3)(a) (as inserted (with effect in accordance with Sch. 3 para. 7 of the amending Act) by Finance Act 2019 (c. 1), Sch. 3 para. 4)