Regulation 11 Investments in reporting offshore fundsI1

This regulation applies if a CoACS has made an investment for the purposes of the scheme in a reporting fund.

The excess (if any) of the reported income of the reporting fund in respect of the investment over the amount distributed by the reporting fund in respect of that investment is treated for income tax and corporation tax purposes as additional income of the participants in the CoACS in proportion to their rights in the CoACS.

If the reporting fund does not make a report available in accordance with regulation 90(5) of the Offshore Funds (Tax) Regulations 2009—

Where paragraph (3) applies, in the first accounting period in which the operator has sufficient information to accurately determine the amount of any excess estimated under that paragraph, the operator must make any necessary corrections by adjusting the estimated amount for that accounting period.

The additional income is treated as arising on the information reporting date in respect of the accounting period in which the excess is treated as made under the Offshore Funds (Tax) Regulations 2009.