Paragraph 3 ITA 2007

United Kingdom

(1)

ITA 2007 is amended as follows.

(2)

In section 809EZA (disguised investment management fees: charge to income tax)—

(a)

omit subsections (2A) to (2C);

(b)

in subsection (6), for paragraph (b) substitute—

“(b)
an AIF within the meaning of regulation 3 of the Alternative Investment Fund Managers Regulations 2013, or any part of an AIF (within that meaning), that is not a collective investment scheme.”;

(c)

in subsection (7)—

(i)

for the opening words substitute “The references in subsection (6) to a collective investment scheme or AIF include—”;

(ii)

in paragraphs (a) and (b), after “collective investment scheme” insert “or AIF”;

(iii)

in paragraphs (a) and (b), after “the scheme” insert “or AIF”.

(3)

In section 809EZB (meaning of “management fee” in section 809EZA)—

(a)

in subsection (1)(a) after “individual” insert “, or a person who is connected with the individual,”;

(b)

in subsection (1)(b) after “individual” insert “, or a person who is connected with the individual,”;

(c)

at the end of subsection (1)(b), omit “or”;

(d)

in subsection (1)(c), for the words from “which” to the end substitute “within the meaning of section 23I of ITTOIA 2005 arising to the individual for the purposes of that section, or”;

(e)

after subsection (1)(c) insert—

“(d)
a sum that would fall within paragraph (c) had it not been deferred as specified in paragraph 9 (2)(a) or (b) of Schedule A1 to ITTOIA 2005.”;

(f)

in the opening words of subsection (2), after “if” insert “(and only if)”;

(g)

after subsection (4) insert—

“(5)
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 the individual is also a partner were not “associates” of the individual for the purposes of sections 450 and 451 of CTA 2010 (“control”).”

(4)

Omit sections 809EZC and 809EZD.

(5)

In section 809EZDA (sums arising to connected persons other than companies), in subsection (1), omit paragraphs (c) and (d).

(6)

In section 809EZDB (sums arising to connected company or unconnected person)—

(a)

in subsection (1)(b), for “is” substitute “are”;

(b)

in the opening words of subsection (5) for “is” substitute “are”;

(c)

in subsection (6) after “A” insert “or a person connected with A”;

(d)

in subsection (7), in the opening words, omit “connected with A”;

(e)

in subsection (9), for the words from “the sum is applied” to the end substitute

“—
(a)
the sum arose from an investment scheme,
(b)
the sum is applied directly or indirectly as an investment in an investment scheme, and
(c)
the persons providing investment management services to the schemes mentioned in paragraphs (a) and (b) are the same or substantially the same.”

(7)

In section 809EZE (interpretation of Chapter)—

(a)

in subsection (1), in the definition of “investment management services”—

(i)

before paragraph (a) insert—

“(za)
the provision of investment advice,”;

(ii)

omit the “and” at the end of paragraph (c);

(iii)

at the end of paragraph (d) insert

“, and
(e)
any activity incidental or ancillary to any activity mentioned in paragraphs (za) to (d);”;

(b)

in the opening words of subsection (3), for the words from “a share” to “the share” substitute “a direct or indirect interest in an investment scheme and who acquired the interest”;

(c)

in subsections (3)(a) and (b) for “share” substitute “interest”.

(8)

In section 809EZH (powers to amend Chapter), omit subsection (1)(c).

(9)

Omit Chapter 5F.