42 Carried interest: election to pay tax as scheme profits arise
Finance (No 2) Act 2023 (2023 c 30) | Legislation

42  Carried interest: election to pay tax as scheme profits arise

(1)     TCGA 1992 is amended as follows.

(2)     After section 103KF insert—

“103KFA Election for carried interest gains to be chargeable as scheme profits arise

(1)     An individual (“A”) may make an election under this section in respect of an investment scheme (“the relevant scheme”) if—

(a)     section 103KA applies in relation to A and the relevant scheme, or

(b)     it is reasonable to expect that it will apply in relation to A and the relevant scheme.

(2)     Subsection (3) applies for a tax year (“the relevant tax year”) where an election made under this section has effect for that tax year.

(3)     A chargeable gain is deemed to arise to A in the relevant tax year and is to be treated as accruing to A immediately before the end of the relevant tax year.

(4)     The amount of the gain is the amount given by reducing—

(a)     the amount of carried interest that would arise to A in the relevant tax year in the circumstances mentioned in subsection (5), by

(b)     the sum of chargeable gains deemed to arise to A under this section in respect of the

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