The Social Security (Contributions) (Amendment No. 5) Regulations 2014

• Citation: S.I. 2014/3196
• Sections: 2

Section 1 Citation, commencement and effect

(1) These Regulations may be cited as the Social Security (Contributions) (Amendment No. 5) Regulations 2014.

(2) These Regulations come into force on the day after the day on which they are made, and have effect for the tax year 2014-15 and subsequent tax years.

Section 2 Amendment of the Social Security (Contributions) Regulations 2001

(1) The Social Security (Contributions) Regulations 2001 are amended as follows.

(2) After regulation 94A (exception from Class 4 liability in respect of certain amounts chargeable to income tax under Schedule D) insert—

Liability of a partner in an AIFM firm for Class 4 contributions

(94B)

(1) This regulation applies if an AIFM firm makes an election under section 863H of ITTOIA 2005 (election for special provision for alternative investment fund managers to apply) .

(2) Where a partner (“P”) in an AIFM firm allocates a profit (“the allocated profit”) to that firm as provided for in section 863I(2) of ITTOIA 2005 (allocation of profit to the AIFM firm), no Class 4 contributions are payable in respect of that allocated profit by virtue of the allocation.

(3) Paragraph (4) applies if all or part of the allocated profit vests in P at a time when P is carrying on the AIFM trade (whether as a partner in the AIFM firm or otherwise).

(4) The amount treated as a profit under section 863J(2) and (5) of ITTOIA 2005 (vesting of remuneration represented by the allocated profit) is to be treated for the purposes of the Act as if it were profits—

(a) to which section 15(1) of the Act (class 4 contributions recoverable under the Income Tax Acts) applies; and

(b) made by P in the tax year in which that profit is chargeable to income tax under Chapter 2 of Part 2 of ITTOIA 2005.

(5) In this regulation—

“AIFM firm” and “AIFM trade” have the meanings given in section 863H(3) and (4) of ITTOIA 2005; and

“ITTOIA 2005” means the Income Tax (Trading and Other Income) Act 2005.