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ITTOIA/S850C (6)

A non-individual partner is simply anyone other than an individual.

»Ê¹ÚÌåÓýapp term non-individual partner includes companies and individuals acting as trustees.

Assets held on trust

»Ê¹ÚÌåÓýapp fact that one partner holds assets on trust for the partnership as a whole (for example, an individual member of the partnership holds leasehold land on trust for the partnership) does not make it a mixed membership partnership.

Alternative Investment Fund Managers (AIFM)

An AIFM firm is a partnership the business of which is managing one or more AIFs or which carries out the function of managing AIFs as a delegate. As part of EU-wide strategy for investor protection, AIFM firms are required to subject part of the “remuneration� of key individuals to performance conditions and to defer when those individuals can access that remuneration.

A member of an AIFM firm (including an LLP), is chargeable on the profits of the partnership as they arise rather than when they are received.

»Ê¹ÚÌåÓýapp AIFM tax provisions allow the AIFM partnership to elect to be treated as a partner in itself in order to pay tax on a member’s remuneration on behalf of the member.

If it does so, the AIFM firm is treated as an individual member of the partnership, not as a non-individual member for the purposes of the mixed membership rules.

For further information on how the excess profit allocation rules interact with the AIFM deferral arrangements, see PM233000.