# Income Tax (Trading and Other Income) Act 2005, Paragraph 4: Tax distribution treated as “carried interest”


(1) A tax distribution arising to an individual from an investment scheme under arrangements is to be treated as constituting “carried interest”.
(2) A sum which arises to an individual from an investment scheme under arrangements is a “tax distribution” if—
(a) under the arrangements the sum is to, or may, arise only if tax (including non-UK tax within the meaning of Part 5 of CTA 2010) becomes payable or is expected to become payable as a result of any individual’s entitlement to carried interest under the arrangements, and
(b) the sum arising to the individual results in a corresponding deduction in the individual’s entitlement to carried interest.

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Source: https://www.legislation.gov.uk/ukpga/2005/5/schedule/A1/paragraph/4 (the official version)
Page: https://openlegislation.uk/income-tax-trading-and-other-income-act-2005/schedule-A1/paragraph-4
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.