Part 4: Income tax, corporation tax and capital gains tax Section 45: Carried interest and disguised investment management fees: "arise" Background note
The government introduced legislation in the Finance Act (No.2) 2015 concerning the taxation of 'carried interest', a part of a fund manager's rewards that is based on the performance of the fund. The legislation ensures that where carried interest is chargeable to tax under the capital gains tax rules, the full amount of the economic gain is charged to capital gains tax.
	The government also introduced changes to the legislation concerning income tax on disguised investment management fees to complement the capital gains tax changes.