HMRC internal manual

Investment Funds Manual

IFM37270 - Charging Provisions: Items chargeable to income tax

Items chargeable to income tax

TCGA92/S103KE

Where a sum of carried interest is charged to both CGT under these rules and also income tax in the same year (for example, where the sum represents interest or dividend income), resulting in two charges in respect of the carried interest, a claim can be made in the appropriate tax return so that the appropriate liability is paid and double taxation does not arise. HMRC will treat the income tax as paid by the payment made with the tax return for the year in question. In this particular scenario, it is therefore not required to have first paid the income tax before being able to claim relief. In all other circumstances, the other tax must have been paid before relief can be claimed.

Further details and examples of the double taxation provisions can be found at (IFM37420).