Section 59B Alternative investment fund managers (1)F1

United Kingdom

(1)

Subsection (2) applies if—

(a)

under section 863I of ITTOIA 2005, a partner (“P”) in a partnership allocates to the partnership an amount of profit (“the allocated profit”) representing variable remuneration which, if it vests in P, will vest in the form of instruments,

(b)

there is a disposal to P of instruments which are partnership assets of the partnership for the purposes of section 59, and

(c)

by virtue of that disposal the variable remuneration vests in P.

(2)

Both the persons making the disposal and P are to be treated as if the instruments were acquired by P from those persons for a consideration of an amount equal to the allocated profit net of the income tax for which the partnership is liable by virtue of section 863I of ITTOIA 2005 in respect of the allocated profit.

(3)

Terms used in this section which are also used in section 863I or 863J of ITTOIA 2005 have the same meaning as in that section.

Annotations

Textual amendments

F1: Ss. 59B, 59C inserted (with effect in accordance with Sch. 17 para. 21 of the amending Act) by Finance Act 2014 (c. 26), Sch. 17 para. 17

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