Taxation of Chargeable Gains Act 1992 section 103KFC

Interaction with other charges

Section 103KFC addresses how tax charges interact when an individual has elected under section 103KFA for carried interest gains to be taxed as scheme profits arise, and ensures relief from double taxation through a claims process.

• An election under section 103KFA to be taxed on carried interest as it arises does not prevent additional tax charges (income tax, capital gains tax or other taxes) on the same carried interest
• Where an individual has paid capital gains tax on a gain treated as accruing under the election and is also charged to another tax on carried interest arising in or after the same tax year, they may claim consequential adjustments to reduce that other tax charge
• Any adjustments made by HMRC must be just and reasonable, and the total relief cannot exceed the lower of the capital gains tax already paid under the election or the amount of the other tax charged
• The separate double taxation relief available under section 103KE cannot be used in respect of tax charged as a result of gains accruing under a section 103KFA election