IFM37500 - Carried Interest: Anti-avoidance

Anti-avoidance

TCGA92/S103KD

The carried interest rules contain an anti-avoidance clause. This is intended to be interpreted widely so that where the main or one of the main purposes of any steps taken or arrangements put in place is to secure that the carried interest rules do not apply to an individual (with or without other individuals), this will not be effective.

HMRC will investigate the circumstances and may challenge any attempts where carried interest holders enter into arrangements to reduce their tax liability. This will be investigated under the anti-avoidance rules in TCGA92/S103KD, other anti-avoidance provisions and, where appropriate, the General Anti-Abuse Rule (GAAR).