Explanatory note

These Regulations amend the Authorised Investment Funds (Tax) Regulations 2006 (S.I. 2006/964) which make provision about the treatment of authorised investment funds for tax purposes.

The Regulations amend regulation 17 to remove the restriction in relation to making interest distributions where a fund receives property income and insert a new regulation 12A which restricts the amount that can be deducted in calculating the profits of a fund by reference to any property income received by a fund. The Regulations also make consequential amendments to a heading and to regulation 13.

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.