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Posted Mon, 06 Jan 2025 11:19:18 GMT by Daisy8151
I have received carried interest from my previous employer. The carried interest is for the period of 2020 to 2023. I become a UK tax resident in 2022. For capital gain tax on this carried interest, should 50% of it or the full amount be considered as the taxable income? Please advise. Thanks a lot.
Posted Tue, 21 Jan 2025 13:53:07 GMT by HMRC Admin 8 Response
Hi,
Carried interest, for capital gains purposes is usually taxed on an arising basis.
This means that the gain is generally taxable in the year you receive it.
As you were resident in the UK when you received the carried interest, the full amount should be declared in your tax return.
There are some circumstances when you can elect for carried interest to be taxable on an accruals basis.
Further information and guidance on how to make an election can be found at:
IFM37710 - Accruals basis elections: introduction 
Thankyou.

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