IFM37120 - Overview: Definition of Carried Interest

Definition of carried interest

ITA07/S809EZC(1)

“Carried interest” for the purposes of these carried interest rules is the sums arising to an individual fund manager as set out in ITA07/S809EZC (IFM36520) or as described in ITA07/S809EZD (IFM36540).

Sometimes amounts of income or gains may be referred to as carried interest and these amounts may not meet this statutory definition. It is a question of fact if a sum meets the definition of carried interest set out in ITA07/S809EZC or ITA07/S809EZD.

Amounts that are determined to be carried interest are subject to the higher rates of capital gains tax in accordance with TCGA92/S1H(9)(a) and (b).