Regulation 14B Tax treatment of qualified investor schemesF1

United Kingdom

(1)

The provisions in paragraph (2) shall not apply to a qualified investor scheme in relation to an accounting period of the scheme unless the genuine diversity of ownership condition (see regulation F29A) is met in relation to that accounting period.

(2)

The provisions referred to in paragraph (1) are—

(a)

the provisions of Part 2 of these Regulations,

(F3aa)

the provisions of Part 4 of these Regulations,

(b)

the provisions of Part 4A of these Regulations,

(c)

where the qualified investor scheme is an authorised unit trust scheme, section 468(1A) of ICTA,

(d)

where the qualified investor scheme is an open-ended investment company, section 468A(1) of ICTA,

(e)

in subsection (1) of section 99 of TCGA 1992 (as modified by these Regulations) the words “except that nothing in this section” to the end of that sub-section, and

(f)

section 100 of TCGA 1992.

(3)

Where the genuine diversity of ownership condition is not met in relation to an accounting period of the scheme—

F4(a)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(F5b)

the total amount available for income allocation to participants must only be allocated in accordance with paragraph (1)(b) of regulation 17 (allocation of income) F6, and

(c)

Part 3A of CTA 2010 (companies with small profits) does not apply.

(4)

In these Regulations a “qualified investor scheme” means a fund, authorised by the F7appropriate regulator, in which a statement that the fund is a qualified investor scheme is included in the instrument constituting the scheme.

F8(5)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Annotations

Textual amendments

F1: Pt. 2A inserted (1.1.2009) by The Authorised Investment Funds (Tax) (Amendment No. 3) Regulations 2008 (S.I. 2008/3159), regs. 1(1), 11 (with reg. 30)
F2: Word in reg. 14B(1) substituted (1.9.2009) by The Authorised Investment Funds (Tax) (Amendment) Regulations 2009 (S.I. 2009/2036), regs. 1, 8(1)
F3: Reg. 14B(2)(aa) inserted (1.9.2009) by The Authorised Investment Funds (Tax) (Amendment) Regulations 2009 (S.I. 2009/2036), regs. 1, 8(2)
F4: Reg. 14B(3)(a) omitted (9.12.2021) by virtue of The Authorised Investment Funds (Tax) (Amendment) Regulations 2021 (S.I. 2021/1270), regs. 1, 4(a)
F5: Reg. 14B(3)(b) substituted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Authorised Investment Funds (Tax) (Amendment) Regulations 2010 (S.I. 2010/294), regs. 1(1), 6 (with reg. 24)
F6: Reg. 14B(3)(c) and word inserted (9.12.2021) by The Authorised Investment Funds (Tax) (Amendment) Regulations 2021 (S.I. 2021/1270), regs. 1, 4(b)
F7: Words in reg. 14B(4) substituted (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 115(b)
F8: Reg. 14B(5) omitted (1.9.2009) by virtue of The Authorised Investment Funds (Tax) (Amendment) Regulations 2009 (S.I. 2009/2036), regs. 1, 8(3)