835OMeaning of “qualifying period”, “relevant disregarded income” and “beneficial entitlement”

1

This section applies for the purposes of this Chapter.

2

A “qualifying period” means—

a

the tax year in which the transaction income mentioned in section 835I(2) is chargeable to tax, or

b

a period of not more than 5 years comprising two or more tax years including that one.

3

The “relevant disregarded income” of the non-UK resident for a qualifying period is the total of the non-UK resident’s income for the tax years comprised in the qualifying period which derives from investment transactions—

a

carried out by the investment manager on the non-UK resident’s behalf, and

b

in relation to which the independent investment manager conditions are met, ignoring the requirements of the 20% rule.

4

A person has a “beneficial entitlement” to relevant disregarded income if the person has or may acquire a beneficial entitlement that is, or would be, attributable to the relevant disregarded income as a result of having an interest or other rights mentioned in subsection (5).

5

The interests and rights referred to in subsection (4) are—

a

an interest (whether or not an interest giving a right to an immediate payment of a share in the profits or gains) in property in which the whole or any part of the relevant disregarded income is represented, or

b

an interest in, or other rights in relation to, the non-UK resident.