Reduction in rate of capital gains tax

Finance Bill – in the House of Commons at 2:00 pm on 6 September 2016.

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Amendments made: 149, page 167, line 42, leave out “(11)” and insert “(11A)”.

Amendment 150, page 168, leave out line 14 and insert—

“(c) carried interest gains (see subsections (12) and (13)).”

Amendment 151, page 169, line 4, at end insert—

‘(11A) After subsection (11) insert—

(12) In subsection (2A)(c) “carried interest gains” means—

(a) gains treated as accruing under section 103KA(2) or (3), and

(b) gains accruing to an individual as a result of carried interest arising to the individual where—

(i) the individual performs investment management services directly or indirectly in respect of an investment scheme under arrangements not involving a partnership,

(ii) the carried interest arises to the individual under the arrangements, and

(iii) the carried interest does not constitute a co-investment repayment or return.

(13) For the purposes of subsection (12)(b)—

(a) “carried interest”, in relation to any arrangements, has the same meaning as in section 809EZB of ITA 2007 (see sections 809EZC and 809EZD of that Act);

(b) carried interest “arises” to an individual if it arises to him or her for the purposes of Chapter 5E of Part 13 of ITA 2007;

(c) “arrangements”, “investment management services” and “investment scheme” have the same meanings as in that Chapter (see sections 809EZA(6) and 809EZE of that Act);

(d) “co-investment repayment or return” has the same meaning as in section 103KA.”—(Jane Ellison.)

New Clause 9