{
  "url": "https://openlegislation.uk/draft-social-security-contributions-amendment-no-5-regulations-2014/note",
  "json_url": "https://openlegislation.uk/draft-social-security-contributions-amendment-no-5-regulations-2014/note.json",
  "legislation": "ukdsi/2014/9780111121535",
  "legislation_title": "The Social Security (Contributions) (Amendment No. 5) Regulations 2014",
  "legislation_url": "https://openlegislation.uk/draft-social-security-contributions-amendment-no-5-regulations-2014",
  "path": "note",
  "kind": "note",
  "number": null,
  "heading": "Explanatory note",
  "text": "(This note is not part of the Regulations)\nThese Regulations amend the Social Security (Contributions) Regulations 2001 (S.I. 2001/1004) (“the principal Regulations”) by modifying the way in which the liability of partners in AIFM firms for Class 4 contributions is determined. The amendments are made in connection with sections 863H to 863L of the Income Tax (Trading and Other Income) Act 2005 (c. 5) (“ITTOIA 2005”) (inserted by paragraph 15 of Schedule 17 to the Finance Act 2014 (c. 26)), which make special provision for determining the income tax liability for profits of partners in AIFM firms where those profits are deferred in line with regulatory requirements in connection with the Alternative Investment Fund Managers Directive (2011/61/EU).\nRegulation 1 provides for the citation, commencement and effect. These Regulations have effect for the tax year 2014-15 and subsequent tax years. The power to make the Regulations with retrospective effect is provided for in section 18A(3) of the Social Security Contributions and Benefits Act 1992 (c. 4) and section 18A(3) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7).\nRegulation 2 amends the principal Regulations by inserting new regulation 94B which applies where an AIFM firm has made an election under section 863H of ITTOIA 2005. Paragraph (2) of new regulation 94B provides that where a partner in an AIFM firm allocates profits to that firm (see section 863I(2) of ITTOIA 2005) no Class 4 contributions shall be payable at the time of allocation in respect of those profits. Where all or part of the allocated profit vests in the partner at a time when the partner is carrying on the AIFM trade, paragraph (4) of new regulation 94B provides that Class 4 contributions are payable by the partner on that profit in the same tax year as that in which the profit is chargeable to income tax.\nA Tax Information and Impact Note covering this instrument was published on 5 December 2013 and is available on the HMRC website at https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/263833/131205_NICs_Bill_Partnerships_TIIN.DOC. It remains an accurate summary of the impacts that apply to this instrument.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukdsi/2014/9780111121535/note",
    "retrieved_at": "2026-10-30T15:12:13.167051+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}