Explanatory note

These Regulations amend the Authorised Investment Funds (Tax) Regulations 2006 (S.I. 2006/964) (“the principal Regulations”).

Regulation 1 deals with citation, commencement and effect; and regulation 2 introduces the amendments.

Regulation 3 amends regulation 9A of the principal Regulations to extend the genuine diversity of ownership condition for all authorised investment funds (not just Property AIFs) to circumstances where the feeder fund is a unit trust scheme, an offshore fund or another authorised investment fund.

Regulation 4 inserts new regulation 14ZD to the principal Regulations. New regulation 14ZD disapplies regulation 17 of the Offshore Funds (Tax) Regulations 2009 (S.I. 2009/3001) in respect of the disposal of an interest in a non-reporting fund by an authorised investment fund which tracks a recognised index of listed securities.

Regulation 5 amends regulation 69F so that Category 4A is treated in the same way as Categories 1 to 4 for the purposes of Category 5 and Category 7.

Regulation 6 removes the definition of “recognised stock exchange” as the definition in section 1005 of the Income Tax Act 2007 and section 1137 of the Corporation Tax Act 2010 will apply for the purposes of the principal Regulations.

Regulation 7 makes a consequential amendment to the Offshore Funds (Tax) Regulations 2009.

A Tax Information and Impact Note covering this Instrument will be published on the HMRC website at http://www.hmrc.gov.uk/thelibrary/tiins.htm.