Explanatory note

The Authorised Investment Funds (Tax) Regulations 2006 (S.I. 2006/964) (“the principal Regulations”) make new provision for the taxation of authorised investment funds. There are two types of authorised investment fund: authorised unit trusts and open-ended investment companies. In the principal Regulations, regulation 95 modifies the Finance Act 1996 in its application to authorised investment funds.

These amending Regulations substitute a new regulation 95 of the principal Regulations to ensure that paragraphs 4 and 8 of Schedule 10 to the Finance Act 1996 apply to open-ended investment companies in the same way that those paragraphs apply to unit trust schemes and to offshore funds.

A full and final Impact Assessment has not been produced for this instrument as no impact on the private or voluntary sectors is foreseen.