Income Tax Act 2007 section 809EZG

Disguised investment management fees: avoidance of double taxation

Section 809EZG provides relief from double taxation where an individual has been charged income tax on a disguised investment management fee under section 809EZA, and a further tax charge arises on the same individual or another person in relation to the same fee or a related sum.

• Where income tax has been charged on a disguised fee under section 809EZA and a further tax charge arises on the same or another person in respect of that fee, the individual may claim a consequential adjustment to avoid being taxed twice on the same amount
• The section also applies where the disguised fee took the form of a loan or advance taxed under section 809EZA, and a separate tax charge then arises on another sum received by the individual which must be used to repay that loan
• Any consequential adjustment is capped at the lower of the income tax charged under section 809EZA and the amount of the other tax charge (or, in the loan scenario, the tax on the portion of the other sum that does not exceed the loan amount to be repaid)
• HMRC must make such adjustments as are just and reasonable, and these may be made for any period, by any means including amending assessments or claims, and without regard to normal time limits