Corporation Tax Act 2010 section 357LJ

Investment managers: disregard of certain chargeable profits

Section 357LJ deals with situations where an investment manager acting on behalf of a company is treated as a Northern Ireland regional establishment (NIRE), and sets out when certain chargeable profits from investment transactions can be excluded from the profits attributed to that NIRE.

• Where an investment manager carries out investment transactions for a company and is treated as its NIRE, the chargeable profits from those transactions may be disregarded when calculating the NIRE's attributable profits.
• Under Case 1, profits are fully disregarded if all the independent investment manager conditions are satisfied for the transaction in question.
• Under Case 2, profits may be disregarded where all the independent investment manager conditions are met except Condition D (the 20% rule), but only to the extent the profits do not represent relevant disregarded income to which the investment manager or a connected person has a beneficial entitlement.
• The terms "relevant disregarded income" and "beneficial entitlement" take their meanings from section 357LF.