Regulation 85M The charge to tax: general provisionsF1

(1)

There is a charge to tax if—

(a)

a person disposes of an asset,

(b)

either condition A or condition B is met, and

(c)

as a result of the disposal, an income gain (see regulation 85Z) arises to the person making the disposal.

(2)

Condition A is that the asset consists of units in a FINROF at the time of the disposal.

(3)

Condition B is that—

(a)

the asset consists of units in an authorised investment fund that had been a FINROF for some of the material period; and

(b)

no valid election under regulation 85Z11 (participant’s power to elect for deemed disposal) was made in relation to the asset.

(4)

In paragraph (3) “the material period” means a period beginning with the date of acquisition of the asset and ending with the date of the disposal.

Annotations

F1: Pt. 6A inserted (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), 21 (with regs. 25, 26)