Section 495 Qualifying holdings

United Kingdom

(1)

For the purposes of section 494(1)(d) a holding in an open-ended investment company, a unit trust scheme or an offshore fund is a qualifying holding at any time if—

(a)

at that time, or

(b)

at any other time in the relevant accounting period,

the company, scheme or fund F1itself fails to meet the qualifying investments test F2... .

F3(2)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3)

In this section “holding”—

(a)

in relation to an open-ended investment company, means—

(i)

except where sub-paragraph (ii) applies, shares in the company, and

(ii)

in a case where under F4section 615(3) of CTA 2010 part of an umbrella company is regarded as an open-ended investment company, rights in the separate pool in question,

(b)

in relation to a unit trust scheme, means an entitlement to a share in the investments of the scheme, and

(c)

in relation to an offshore fund, means—

(i)

shares in any company by which the fund is constituted, or

(ii)

an entitlement to a share in the investments of the fund.

(4)

In this section “relevant accounting period” means the accounting period referred to in section 490(1).

Annotations

Textual amendments

F1: Words in s. 495(1) substituted (with effect in accordance with s. 27(7)-(9) of the amending Act) by Finance Act 2014 (c. 26), s. 27(6)(a)(i)
F2: Words in s. 495(1) omitted (with effect in accordance with s. 27(7)-(9) of the amending Act) by virtue of Finance Act 2014 (c. 26), s. 27(6)(a)(ii)
F3: S. 495(2) omitted (with effect in accordance with s. 27(7)-(9) of the amending Act) by virtue of Finance Act 2014 (c. 26), s. 27(6)(b)
F4: Words in s. 495(3)(a)(ii) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 629 (with Sch. 2)

Notes on Part 6

Modifications

C1: Pt. 6 modified (for the tax year 2026-27 and subsequent tax years (but in relation to investment management services whenever performed)) by 2005 c. 5, Sch. A1 para. 35(7) (as inserted by Finance Act 2026 (c. 11), s. 58(6), Sch. 11 para. 1)