Paragraph 9 Deferred sumsF1

(1)

But paragraph 8 does not apply in relation to a sum arising to—

(a)

a company connected with A, or

(b)

a person not connected with A,

for as long as the sum is a deferred sum in relation to A.

(2)

In this paragraph, “deferred sum”, in relation to A—

(a)

means a sum where the provision of the sum to A or a person connected with A is deferred (whether pending the meeting of any conditions (including conditions which may never be met) or otherwise), and

(b)

includes A's share (as determined on a just and reasonable basis) of any sum the provision of which to A and one or more other persons, taken together, has been deferred (whether pending the meeting of any conditions (including conditions which may never be met) or otherwise).

In this sub-paragraph, in a case where the sum referred to in sub-paragraph (1) arises to a company connected with A, the reference to a person connected with A does not include that company.

(3)

Where—

(a)

paragraph 8 has been disapplied in relation to a deferred sum by virtue of sub-paragraph (1), and

(b)

the sum ceases to be a deferred sum in relation to A,

the sum is to be regarded as arising to the company or person mentioned in sub-paragraph (1) at the time it ceases to be a deferred sum.

(4)

Section 993 of ITA 2007 (meaning of “connected”) applies for the purposes of this paragraph 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”).

(5)

A sum which is deferred carried interest within the meaning of section 103KG(3) of TCGA 1992 when this paragraph comes into force is to be treated for the purposes of sub-paragraph (3) as a deferred sum in relation to which paragraph 8 has been disapplied virtue of sub-paragraph (1).

Annotations

Textual amendments

F1: Sch. A1 inserted (for the tax year 2026-27 and subsequent tax years (but in relation to investment management services whenever performed)) by Finance Act 2026 (c. 11), s. 58(6), Sch. 11 para. 1