# The Authorised Investment Funds (Tax) Regulations 2006, Regulation 69X: Ring-fencing of tax-exempt business


(1) For the purposes of corporation tax, the business of F (tax-exempt) shall be treated as a separate business (distinct from—
(a) any business carried on by F (pre-entry),
(b) any business carried on by F (residual), and
(c) any business carried on by F (post-cessation)).
(2) For the purposes of corporation tax, F (tax-exempt) shall be treated as a separate company (distinct from—
(a) F (pre-entry),
(b) F (residual), and
(c) F (post-cessation)).
(3) In particular—
(a) a loss incurred by F (tax-exempt) may not be set off against the net income of F (residual),
(b) a loss incurred in respect of F (residual) may not be set off against the net income of F (tax exempt),
(c) a loss incurred in respect of F (pre-entry) may not be set off against the net income of F (tax-exempt) (but this regulation does not prevent a loss of that kind from being set off against profits of F (residual)),
(d) a loss incurred by F (tax-exempt) may not be set off against profits arising to F (post-cessation) (in respect of business of any kind), and
(e) receipts accruing after entry but relating to business of F (pre-entry) shall not be treated as receipts of F (tax-exempt).
(4) In paragraph (3) a reference to a loss includes a reference to a deficit, expense, charge or allowance.
(5) Section 392B of ICTA (ring-fencing of losses from overseas property business) shall not apply to business of F (tax-exempt).
(6) Paragraphs 5B and 5C of Schedule 28AA to ICTA (transfer pricing: exemption for small and medium enterprises) shall not apply to an open-ended investment company to which this Part applies (whether to F (tax-exempt) or to F (residual)).

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Source: https://www.legislation.gov.uk/uksi/2006/964/regulation/69X (the official version)
Page: https://openlegislation.uk/authorised-investment-funds-tax-regulations-2006/regulation-69X
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.