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Section 103KE: Carried interest: avoidance of double taxation

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

This section applies where—

capital gains tax is charged on an individual by virtue of section 103KA in respect of any carried interest, and
Condition A or Condition B is met.

Condition A is that—

at any time, tax (whether income tax or another tax) charged on the individual in relation to the carried interest has been paid by the individual (and has not been repaid), and
the amount on which tax is charged as specified in subsection (1)(a) is not a permissible deduction under section 103KA(6)(b) or (c).

Condition B is that at any time tax (whether income tax or another tax) charged on another person in relation to the carried interest has been paid by that other person (and has not been repaid).

In order to avoid a double charge to tax, the individual may make a claim for one or more consequential adjustments to be made in respect of the capital gains tax charged as mentioned in subsection (1)(a).

On a claim under this section 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 capital gains tax charged as mentioned in subsection (1)(a), and
the tax charged as mentioned in subsection (2)(a) or (3).

Consequential adjustments may be made—

in respect of any period,
by way of an assessment, the modification of an assessment, the amendment of a claim, or otherwise, and
despite any time limit imposed by or under an enactment.

Where—

an individual makes a claim under this section in respect of a year of assessment, and
apart from this subsection, an amount falls to be deducted under section 1(3)(b) from the total amount of chargeable gains accruing to the individual in that year,

the individual may elect that the amount to be so deducted be reduced by any amount not exceeding the amount on which tax is charged as specified in subsection (2)(a) or (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.