New Clause 6: Finance Bill (Ways and Means) (Payment of Corporation Tax)
New Clause 6— Carried interest and disguised investment management fees: “arise”
‘(1) In ITA 2007, after section 809EZD insert—
“809EZDA     Sums arising to connected persons other than companies
(1) This section applies in relation to an individual (“A”) if—
(a) a sum arises to a person (“B”) who is connected with A,
(b) B is not a company,
(c) income tax is not charged on B in respect of the sum by virtue of this Chapter,
(d) capital gains tax is not charged on B in respect of the sum by virtue of Chapter 5 of Part 3 of TCGA 1992, and
(e) the sum does not arise to A apart from this section.
(2) The sum referred to in subsection (1)(a) arises to A for the purposes of this Chapter.
(3) Where a sum arises to A by virtue of this section, it arises to A at the time the sum referred to in subsection (1)(a) arises to B.
(4) Section 993 (meaning of “connected”) applies for the purposes of this section, but as if—
(a) subsection (4) of that section were omitted, and
(b) partners in a partnership in which A is also a partner were not “associates” of A for the purposes of sections 450 and 451 of CTA 2010 (“control”).
“809EZDB     Sums arising to connected company or unconnected person
(1) This section applies in relation to an individual (“A”) if—
(a) a sum arises to—
(i) a company connected with A, or
(ii) a person not connected with A,
(b) any of the enjoyment conditions is met, and
(c) the sum does not arise to A apart from this section.
(2) The enjoyment conditions are—
(a) the sum, or part of the sum, is in fact so dealt with by any person as to be calculated at some time to enure for the benefit of A or a person connected with A;
(b) the arising of the sum operates to increase the value to A or a person connected with A of any assets which—
(i) A or the connected person holds, or
(ii) are held for the benefit of A or the connected person;
(c) A or a person connected with A receives or is entitled to receive at any time any benefit provided or to be provided out of the sum or part of the sum;
(d) A or a person connected with A may become entitled to the beneficial enjoyment of the sum or part of the sum if one or more powers are exercised or successively exercised (and for these purposes it does not matter who may exercise the powers or whether they are exercisable with or without the consent of another person);
(e) A or a person connected with A is able in any manner to control directly or indirectly the application of the sum or part of the sum.