PART 1Income tax

Disguised fees and carried interest

36Disguised investment management fees

1

Section 809EZA of ITA 2007 (disguised investment management fees: charge to income tax) is amended as specified in subsections (2) and (3).

2

In subsection (3)—

a

in paragraph (a), for “performs” substitute “ at any time performs or is to perform ”;

b

omit paragraph (b);

c

in paragraph (c), for “the scheme” substitute “ an investment scheme ”.

3

After subsection (6) insert—

7

The reference in subsection (6)(a) to a collective investment scheme includes—

a

arrangements which permit an external investor to participate in investments acquired by the collective investment scheme without participating in the scheme itself, and

b

arrangements under which sums arise to an individual performing investment management services in respect of the collective investment scheme without those sums arising from the scheme itself.

4

In section 809EZE of that Act (interpretation), in subsection (1), in paragraph (a) of the definition of “external investor”, for “performs” substitute “ at any time performs or is to perform ”.

5

The amendments made by this section have effect in relation to sums arising on or after 6 April 2016 (whenever the arrangements under which the sums arise were made).