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Section 103KFC: Interaction with other charges

Taxation of Chargeable Gains Act 1992 · 1992 c. 12View on legislation.gov.uk

Part III: Individuals, partnerships, trusts and collective investment schemes etc — Chapter 5: Carried interest

The accrual of a chargeable gain treated as accruing to an individual under section 103KFA(3) does not prevent the individual or any other person being charged to tax (whether income tax, capital gains tax or any other tax, and including as a result of section 103KA) in relation to carried interest that arises to the individual under arrangements with the relevant scheme.

But subsection (3) applies where an individual—

has made an election under section 103KFA,
has accrued a chargeable gain treated as accruing under section 103KFA(3),
has paid (and has not been repaid) an amount of capital gains tax that is attributable to that chargeable gain, and
is charged to tax (whether income tax, capital gains tax or another tax) in relation to carried interest that—
arises to the individual under arrangements with the relevant scheme, and
arises in or after the tax year in which a gain first accrued under that section.

The individual may make a claim for one or more consequential adjustments to be made reducing the tax mentioned in subsection (2)(d).

On a claim under subsection (3) an officer of Revenue and Customs must make such of the consequential adjustments claimed (if any) as are just and reasonable.

The value of any consequential adjustments made must not exceed the lesser of—

the amount of capital gains tax paid as mentioned in subsection (2)(c), and
the tax charged as mentioned in subsection (2)(d).

Consequential adjustments may be made—

in respect of any period, and
by way of an assessment, the modification of an assessment, the amendment of a claim, or otherwise.

No claim may be made under section 103KE (carried interest: avoidance of double taxation) in respect of tax charged as a result of the accrual of a chargeable gain treated as accruing to an individual under section 103KFA(3).

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This legislation text comes from legislation.gov.uk. Contains public sector information licensed under the Open Government Licence v3.0. These source and reuse terms cover the legislation text, not Remedy's commentary.

Reuse reviewed 21 August 2026 under Open Government Licence v3.0.