16(1)TMA 1970 is amended as follows.U.K.
(2)In Part 2 (returns of income and gains) after section 12AD insert—
(1)An officer of Revenue and Customs may by notice require a partnership which has made an election under section 863H of ITTOIA 2005 (whether or not the election has been revoked) to provide the officer with such information as the officer may reasonably require for purposes connected with the operation of sections 863H to 863K of ITTOIA 2005.
(2)The information must be provided within such reasonable time as the officer may specify in the notice.”
(3)In column 2 of the Table in section 98 (special returns etc), at the appropriate place, insert “ section 12ADA of this Act ”.
17U.K.In Part 3 of TCGA 1992 (which makes special provision about partnerships etc) after section 59A insert—
(1)Subsection (2) applies if—
(a)under section 863I of ITTOIA 2005, a partner (“P”) in a partnership allocates to the partnership an amount of profit (“the allocated profit”) representing variable remuneration which, if it vests in P, will vest in the form of instruments,
(b)there is a disposal to P of instruments which are partnership assets of the partnership for the purposes of section 59, and
(c)by virtue of that disposal the variable remuneration vests in P.
(2)Both the persons making the disposal and P are to be treated as if the instruments were acquired by P from those persons for a consideration of an amount equal to the allocated profit net of the income tax for which the partnership is liable by virtue of section 863I of ITTOIA 2005 in respect of the allocated profit.
(3)Terms used in this section which are also used in section 863I or 863J of ITTOIA 2005 have the same meaning as in that section.
(1)Subsection (2) applies if—
(a)under section 863I of ITTOIA 2005, a partner (“P”) in a partnership allocates to the partnership an amount of profit (“the allocated profit”) representing variable remuneration which, if it vests in P, will vest in the form of instruments,
(b)there is a disposal to P of instruments by a company which is a partner in the partnership,
(c)by virtue of that disposal the variable remuneration vests in P, and
(d)the company would, as a partner in the partnership, have been charged to tax on the allocated profit but for adjustments made in the case of the company under section 1264A(2) of CTA 2009 or section 850C(5) of ITTOIA 2005.
(2)Both the company and P are to be treated as if the instruments were acquired by P from the company for a consideration of an amount equal to the allocated profit net of the income tax for which the partnership is liable by virtue of section 863I of ITTOIA 2005 in respect of the allocated profit.
(3)Terms used in this section which are also used in section 863I or 863J of ITTOIA 2005 have the same meaning as in that section.”
18U.K.In Part 4 of FA 2004 (pensions) in section 189 (relevant UK individual) after subsection (2A) insert—
“(2B)The income covered by subsection (2)(b) includes—
(a)an amount treated as a profit under section 863J(2) of ITTOIA 2005, and
(b)income treated as received under section 863J(4) of that Act.”
19U.K.In section 23 of ITA 2007 (calculation of income tax liability) at the end of Step 4 insert— “ See also section 863I of ITTOIA 2005 which provides for certain partnership profits to be charged at the additional rate. ”