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Section 103KF Relief for external investors on disposal of partnership assetF1

United Kingdom

(1)

If—

(a)

a chargeable gain accrues to an external investor in an investment scheme on the disposal of one or more partnership assets, and

(b)

the external investor makes a claim for relief under this section,

then subsection (2) applies in relation to the disposal.

(2)

The amount of the chargeable gain is to be reduced by an amount equal to—

I − C

where—

  1. (a)

    I is an amount equal to such part of the sum invested in the fund by the external investor which on a just and reasonable basis is referable to the asset or assets disposed of, and

  2. (b)

    C is the amount deducted under section 38(1)(a) in respect of consideration given wholly and exclusively for the acquisition of the asset or assets.

(F23)

In this section, “external investor” and “investment scheme” have the same meaning as in section 23I of ITTOIA 2005 (see section 23R of that Act).

Annotations

Textual amendments

F1

Pt. 3 Ch. 5 inserted (with effect in accordance with s. 43(2)-(4) of the amending Act) by Finance (No. 2) Act 2015 (c. 33), s. 43(1)

F2

S. 103KF(3) 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. 2(10)

Notes on Part III

Textual amendments

F1

Word in Pt. 3 heading inserted (with effect in accordance with Sch. 22 para. 12 of the amending Act) by Finance Act 2009 (c. 10), Sch. 22 para. 9; S.I. 2010/670, art. 2