Regulation 29 Application of Part 4 of FA 2003 to a RIF that ceases to be a RIF and becomes an eligible co-ownership scheme

(1)

An “eligible co-ownership scheme” means a co-ownership scheme which—

(a)

has ceased to be a RIF as a result of ceasing to meet a qualifying condition, but

(b)

continues to—

(i)

be UK-based (see regulation 6),

(ii)

be an AIF, as defined by regulation 3 of the Alternative Investment Fund Managers Regulations 2013^f1,

(iii)

meet the conditions set out in section 261E(2) and (3) of FISMA 2000^f2, and

(iv)

not be an authorised co-ownership scheme.

(2)

Part 4 of FA 2003 applies in relation to an eligible co-ownership scheme as if—

(a)

the scheme were a company, and

(b)

the rights of the participants were shares in the company.

(3)

For the purposes of Part 5 of Schedule 9A to FA 2003^f3, an eligible co-ownership scheme is not “non-resident” in relation to any chargeable transaction.

(4)

Paragraphs (2) and (3) apply in relation to an eligible co-ownership scheme from the time that the scheme ceases to be a RIF until the earliest of the scheme—

(a)

becoming a RIF,

(b)

being wound up, or

(c)

ceasing to meet one or more of the conditions in paragraph (1)(b).

(5)

If an eligible co-ownership scheme is an eligible umbrella scheme then Part 4 of FA 2003 applies in relation to the scheme as it applies in relation to an umbrella scheme which is a co-ownership contractual scheme within the meaning of section 102A(2A) of FA 2003^f4.

(6)

An eligible co-ownership scheme is an eligible umbrella scheme if it meets the conditions set out in paragraphs (a) and (b) of subsection (3) of section 102A of FA 2003.

Annotations

Footnotes

f1: S.I. 2013/1773, amended by S.I. 2019/328.
f2: Section 261E was inserted by S.I. 2013/1388.
f3: Schedule 9A was inserted by paragraph 5 of Schedule 16 to the Finance Act 2021 (c. 26).
f4: See also subsections (3) to (6) of section 102A. Section 102A was inserted by paragraph 1 of Schedule 16 to the Finance Act 2016 (c. 24).