IFM36110 - Overview: Scope of the disguised investment management fees (DIMF) guidance

Scope of the disguised investment management fees (DIMF) guidance

What this guidance is intended to do?

This guidance explains how the legislation within Chapter 5E of Part 13 of Income Tax Act 2007 is applied to individuals who receive sums for the provision of investment management services (IFM36310). The legislation applies irrespective of how such sums are described and whatever the legal form of the payment.

This legislation may be referred to as the disguised investment management fees rules or DIMF rules.

The intention of this guidance is to provide explanation of the legislation to enable you to:

• establish if an individual is affected by the DIMF rules
• identify fees arising to those individuals that will be subject to the DIMF rules
• understand how amounts chargeable under Chapter 5E should be reported through self assessment
• understand how potential double taxation resulting from the DIMF rules may be relieved.

This guidance refers to individuals who provide investment management services.  These may be referred to as investment fund managers, fund managers and asset managers.  In everyday use, these terms may be applied to a company, partnership or individuals, however the legislation is concerned with the taxation implications for individuals who provide investment management services irrespective how they provide these services or how they receive payment for these services.

A company cannot be subject to a charge under the DIMF rules.