Regulation 48 Investments in non-reporting offshore funds: first case

(1)

This regulation applies if—

(a)

a RIF has made an investment for its purposes in a non-reporting fund, and

(b)

the conditions in paragraph (2) are met for an accounting period.

(2)

The conditions are that—

(a)

the RIF has access to the accounts of the non-reporting fund,

(b)

the RIF has sufficient information about the non-reporting fund to enable it to prepare a computation of reportable income for the fund, and

(c)

the RIF can reasonably expect to rely on continued access to that information for the period in which it will hold the investment in the fund.

(3)

The amount that would be the excess, if any, of the reportable income of the non-reporting fund in respect of the investment over the amount distributed by the non-reporting fund in respect of that investment is treated for income tax and corporation tax purposes as additional income of the participants in the RIF in proportion to their rights in the RIF.

(4)

The additional income is treated as arising on the information reporting date in respect of the accounting period to which the excess relates.