Taxation of Chargeable Gains Act 1992 section 103KD

Carried interest: anti-avoidance

Section 103KD is an anti-avoidance provision that prevents individuals from using arrangements designed to circumvent the carried interest rules in section 103KA.

• Any arrangements whose main purpose (or one of whose main purposes) is to avoid the carried interest rules in section 103KA are to be disregarded
• The provision applies whether the arrangements are intended to benefit a single individual or a group of individuals
• This anti-avoidance rule has applied to carried interest arising on or after 8 July 2015, unless linked to partnership asset disposals before that date
• The effect is that HMRC will apply the carried interest rules as though the avoidance arrangements had never been put in place