Regulation 69Z7 Breach of balance of business conditionsF1
Paragraph (2) applies if a newly qualified company—
is in breach of condition A set out in regulation 69N(2)(a) in its first accounting period, or
is in breach of condition B set out in regulation 69N(3)(a) at the end of its first accounting period.
This Part shall cease to apply to the company at the end of its first accounting period and regulation 69Z41 shall apply.
Paragraphs (4) to (7) apply if an open-ended-investment company to which this Part applies—
is in breach of condition A set out in regulation 69N(2)(b) in an accounting period, or
is in breach of condition B set out in regulation 69N(3)(b) at the end of an accounting period.
If the conditions specified in paragraph (6) are met, this Part shall continue to apply to the company despite the breach (but see paragraph (7) and regulation 69Z8).
If the conditions specified in paragraph (6) are not met, the Commissioners may give a termination notice to the company.
The conditions are that—
property investment business is at least 50% of the company’s net income in the accounting period,
the value of the assets involved in property investment business is at least 50% of the total value of assets held by the company at the end of the accounting period.
If this regulation applies to a company in three different accounting periods in a period of ten years beginning with the first day of the accounting period in which the company becomes aware of the first of those breaches, the Commissioners may give a termination notice to the company.
Annotations
Textual amendments
- F1
Pt. 4A inserted (6.4.2008) by The Authorised Investment Funds (Tax) (Amendment) Regulations 2008 (S.I. 2008/705), regs. 1, 5