IFM37261 - Charging provisions: Definition of "arising": Overview

TCGA92/S103KG

ITA07/S809EZA(3)(c)

ITA07/S809EZDA - S809EZDB

A sum “arises” for the purposes of TCGA92/S103KG(1) if, and only if, it arises to the individual for the purposes of the disguised investment management fees (DIMF) rules at Chapter 5E of Part 13 of ITA 2007 (IFM36316).

The DIMF legislation was amended as from 22 October 2015 with regards to the definition of “arising”. There was no definition of “arising” within the legislation prior to 22 October 2015. Sums arising after 8 July 2015 but before 22 October 2015 were said to arise “directly or indirectly” to an individual (ITA07/S809EZA(3)(c)) (IFM36351).

To clarify matters, the term “directly or indirectly” was removed from the legislation and new definitions of “arise” (ITA07/S809EZDA and S809EZDB) were added to the DIMF legislation as part of Finance Act (No.2) 2015/S45.