The Principal Act is hereby amended by inserting the following section after section 541B:
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"541C.— (1) In this section— |
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‘ carried interest ', in relation to a relevant investment, means the share of profits (where the share ratio was agreed at the outset of the relevant investment) referred to in paragraph (b) of the definition of ‘total profits of an investment' that is received by a company or partnership in respect of the management of the relevant investment; |
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‘ carried interest to which this section applies ', in relation to a relevant investment, means an amount of carried interest which is not greater than 20 per cent of the total profits from the relevant investment; |
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‘ innovation activities ' means development of new technological, telecommunication, scientific or business processes; |
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‘ investor ', in relation to a relevant investment, means a person other than a person entitled to carried interest or a person connected with that person; |
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