»Ê¹ÚÌåÓýapp

Condition 2 - A management fee arising to the individual (from 22 October 2015 onwards)

ITA07/S809EZA(3)(c)

ITA07/S809EZDA - S809EZDB

»Ê¹ÚÌåÓýapp second condition for a sum to be a disguised fee is that under the arrangements a management fee must ‘ariseâ€� to the individual in the tax year.

»Ê¹ÚÌåÓýapp requirements for Condition 2 were slightly different prior to 22 October 2015 (IFM36351), as from 22 October 2015, there is legislation (ITA07/S809EZDA and ITA07/S809EZDB) which defines when a management fee arises to other persons or connected companies. Prior to 22 October 2015 a management fee had to arise ‘directlyâ€� or ‘indirectlyâ€� to an individual.

If the sum you are considering has arisen prior to 22 October 2015 you should refer to IFM36351.

Dropping of the concept of ‘directly or indirectly�

»Ê¹ÚÌåÓýapp concept of whether a sum has arisen ‘directly or indirectlyâ€� from a scheme does not apply from 22 October 2015.

In the majority of cases the addition to the legislation will not change the effect of the previous wording. »Ê¹ÚÌåÓýapp legislation still seeks to draw a line between genuine corporate management vehicles and more passive structures which are put in place to gain a tax advantage in relation to their disguised fee.