{
  "url": "https://openlegislation.uk/authorised-unit-trust-scheme-investment-and-borrowing-powers-regulations-1988/regulation-3",
  "json_url": "https://openlegislation.uk/authorised-unit-trust-scheme-investment-and-borrowing-powers-regulations-1988/regulation-3.json",
  "legislation": "uksi/1988/284",
  "legislation_title": "The Authorised Unit Trust Scheme (Investment and Borrowing Powers) Regulations 1988",
  "legislation_url": "https://openlegislation.uk/authorised-unit-trust-scheme-investment-and-borrowing-powers-regulations-1988",
  "path": "regulation/3",
  "kind": "regulation",
  "number": "3",
  "heading": "Property included and assumptions to be made in valuing fund",
  "text": "(1) This regulation and regulation 4 apply with respect to the determination of the value of the property of a scheme for any purpose of these Regulations.\n(2) For the purpose of determining the value of the property of a scheme—\n(a) it shall be assumed that any units which the trustee is under an obligation to create or cancel have been created or cancelled, as the case may be, that the trustee has paid or, as the case may be, has received the consideration for those units and that all other things required to be done in consequence thereof were done;\n(b) where the trustee has not done something in consequence of a creation or cancellation of units which he is required to do, it shall be assumed that that thing was done;\n(c) subject to paragraph (3), where agreements are in existence for the unconditional sale or purchase of property on behalf of the scheme which have not been completed it shall be assumed that they were completed at that time and that everything required to be done in accordance with their terms was done;\n(d) there shall be deducted from the property of the scheme—\n(i) a reasonable estimate by the manager of the total amount of liabilities, including potential liabilities, in respect of tax on unrealised capital gains which have accrued to date and are payable out of the property of the scheme including the principal amount of any outstanding borrowings whenever repayable;\n(ii) a reasonable estimate by the manager of the total amount of liabilities for tax on realised capital gains in respect of the most recently completed accounting period;\n(iii) such sum in respect of tax on capital gains realised in the current accounting period as in the reasonable estimate of the manager will become payable;\n(iv) a reasonable estimate by the manager of the total amount of any liabilities for taxation levied on income accrued before the relevant time;\n(v) the amount of the manager’s periodic charge, if any, and value added tax chargeable in respect of services supplied by the manager in consideration of that periodic charge accrued but remaining unpaid;\n(vi) a reasonable estimate by the manager of the total amount of any other liabilities payable out of the property of the scheme with any tax thereon and any accrued interest on borrowings; and\n(vii) the value, calculated in accordance with regulation 4(3), of all options written for the scheme;\n(e) there shall be added to the property of the scheme—\n(i) a reasonable estimate by the manager of the total amount of any claims for repayment of any taxation levied on capital (including capital gains) or on income accrued before the relevant time; and\n(ii) a sum representing any interest or dividends accrued but not received or receivable; and\n(f) in determining the value in the base currency of any property which would otherwise be valued in a currency other than the base currency, the value shall, unless the manager and the trustee agree that it is in the interests of participants and potential participants that a different rate should be used, in which case the value shall be converted at the rate agreed between them, be converted at a rate of exchange which represents the average of the highest and the lowest rates of exchange quoted, at the relevant time, for conversion of that currency into the base currency on the market on which the manager would normally deal if he wished to make such a conversion.\n(3) For the purposes of paragraph (2)(c), an agreement shall not be regarded as one for the unconditional sale or purchase of property if either—\n(a) it is a future or a contract for differences which is not yet due to be performed or which is due to be performed but which has been closed out; or\n(b) it is an option written for the scheme which has not expired but which has not yet been exercised by the purchaser or which has been exercised but which has been closed out; or\n(c) it is an option purchased for the scheme which has not expired but which has not yet been exercised.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/1988/284/regulation/3",
    "retrieved_at": "2026-10-29T16:11:24.323440+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}