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The Authorised Investment Funds (Tax) Regulations 2006

Draft. This instrument was laid in draft and may differ from the one made. Look for the made version under its title.

Draft 2006, ISBN 0110740300

Original text. legislation.gov.uk does not revise statutory instruments, so later amendments are not shown here. Changes made to it are listed under each provision when known.

Draft Regulations laid before the House of Commons under section 19(4) of the Finance (No. 2) Act 2005, for approval by resolution of the House of Commons.

INCOME TAX

CORPORATION TAX

CAPITAL GAINS TAX

Made 2006

Coming into force 2006

The Treasury, in exercise of the powers conferred upon them by sections 17(3) and 18 of the Finance (No. 2) Act 2005f1 and section 152 of the Finance Act 1995f2 make the following Regulations:

Annotations to the whole text

Footnotes

f1

2005 c. 22.

f2

1995 c. 4; section 152 was amended by paragraph 13 of Schedule 19 to the Finance Act 1999 (c. 16) and Article 90 of S.I. 2001/3629.

Contents

  1. Part 1: PRELIMINARY PROVISIONS AND INTERPRETATION
  2. Preliminary provisions
  3. 1Citation, commencement and effect
  4. 2Structure of these Regulations
  5. Interpretation
  6. 3Definition of “authorised investment funds”
  7. 4Definition of “open-ended investment company”
  8. 5Interpretation of expressions relating to authorised unit trust schemes
  9. 6Further definitions generally relevant for authorised investment funds
  10. 7Umbrella companies and umbrella schemes: interpretation
  11. 8General interpretation
  12. 9Abbreviations and general index
  13. Part 2: THE TAX TREATMENT OF AUTHORISED INVESTMENT FUNDS
  14. Loan relationships and derivative contracts: exclusion of capital profits, gains or losses
  15. 10General rule for loan relationships: exclusion of capital profits, gains or losses
  16. 11General rule for derivative contracts: exclusion of capital profits, gains or losses
  17. 12Accounts prepared in accordance with UK generally accepted accounting practice
  18. Loan relationships: treatment of interest distributions and deficits
  19. 13Treatment of interest distributions for purposes of loan relationships
  20. 14Treatment of deficits on loan relationships
  21. Part 3: DISTRIBUTIONS MADE BY AUTHORISED INVESTMENT FUNDS
  22. Preliminary
  23. 15Interpretation
  24. 16Funds excluded from the ambit of this Part
  25. Distribution accounts: general
  26. 17Contents of distribution accounts
  27. Interest distributions
  28. 18Interest distributions: general
  29. 19The qualifying investments test
  30. 20Meaning of “qualifying investments”
  31. 21Meaning of “qualifying investments”: further provisions
  32. Dividend distributions
  33. 22Dividend distributions: general
  34. De minimis amounts
  35. 23Provisions applying if amounts available for distribution are de minimis
  36. Part 4: THE TREATMENT OF PARTICIPANTS IN AUTHORISED INVESTMENT FUNDS
  37. Chapter 1: PRELIMINARY PROVISIONS
  38. 24Structure of this Part
  39. 25Funds excluded from the ambit of this Part
  40. Chapter 2: PARTICIPANTS CHARGEABLE TO INCOME TAX
  41. Deduction of tax from interest distributions: general
  42. 26Deduction of tax where interest distributions made
  43. The reputable intermediary condition
  44. 27The reputable intermediary condition
  45. 28The reputable intermediary condition: further provisions
  46. 29Consequences of reasonable but incorrect belief
  47. The residence condition
  48. 30The residence condition
  49. 31Residence declarations
  50. 32References to beneficiaries in regulations 30 and 31
  51. 33Interest distributions: the position of the legal owner
  52. The non-liability condition
  53. 34The non-liability condition
  54. 35Qualifying certificates
  55. 36The contents condition
  56. 37The supplier condition
  57. 38The time limit condition
  58. 39The continuing validity condition
  59. 40The qualifying circumstances condition
  60. 41The joint holding condition
  61. 42Qualifying certificates valid for only part of jointly held accounts: introductory
  62. 43Qualifying certificates valid for only part of jointly held accounts: the general rule
  63. 44Qualifying certificates valid for only part of jointly held accounts: further provisions
  64. 45Consequences of notice under regulation 39(6)
  65. 46Qualifying certificate not in writing
  66. Chapter 3: PARTICIPANTS CHARGEABLE TO CORPORATION TAX
  67. Interest distributions
  68. 47The obligation to deduct tax
  69. Dividend distributions
  70. 48General
  71. 49Calculation of unfranked part of dividend distribution
  72. 50References to gross income
  73. 51Cases where participant is the manager of the fund
  74. 52Repayments of tax
  75. Chapter 4: CHARGE TO TAX ON SUBSTANTIAL QIS HOLDINGS IN QUALIFIED INVESTOR SCHEMES
  76. General
  77. 53Charge to tax under this Chapter
  78. 54Meaning of “substantial QIS holding”
  79. 55Amount charged to tax under this Chapter
  80. 56Measuring dates and meaning of “chargeable measuring date”
  81. 57How tax is charged under this Chapter: income tax
  82. 58How tax is charged under this Chapter: corporation tax
  83. 59Further provisions
  84. The first measuring date
  85. 60The general rule
  86. 61Cases affected by the coming into force of these Regulations
  87. 62Cases involving the launch of qualified investor schemes
  88. 63Cases where a participant’s holding becomes substantial
  89. 64Definition of the “first measuring date”
  90. 65Calculation to be made on the first measuring date
  91. Disposals of holdings
  92. 66Reorganisations etc.
  93. 67Disposal of part of a substantial QIS holding
  94. 68Disposal of the whole of a substantial QIS holding
  95. 69No gain/no loss disposals
  96. Part 5: COMPLIANCE
  97. Information relating to distributions
  98. 70Application of section 234A of ICTA
  99. Interest distributions
  100. 71Notification of interest distributions made without deduction of tax
  101. 72Information about interest distributions made without deduction of tax
  102. 73Inspection of records
  103. 74Use of information
  104. Residence declarations
  105. 75Inspection of residence declarations
  106. Part 6: FURTHER PROVISIONS RELATING TO AUTHORISED INVESTMENT FUNDS
  107. Chapter 1: GENERAL
  108. 76Ownership of shares of different denominations in open-ended investment companies
  109. 77Non-discrimination in respect of different classes of shares
  110. Chapter 2: AMALGAMATION OF AN AUTHORISED UNIT TRUST WITH, AND CONVERSION OF AN AUTHORISED UNIT TRUST TO, AN OPEN-ENDED INVESTMENT COMPANY
  111. 78Circumstances in which this Chapter applies
  112. 79Ending of accounting period of the target trust
  113. 80Carrying forward of excess management expenses
  114. 81Distributions by authorised unit trust after the end of its pre-transfer accounting period
  115. 82Continuing validity of residence declarations
  116. 83Powers of the acquiring company
  117. 84Assessments made on discovery
  118. 85Prevention of double relief
  119. Part 7: CONSEQUENTIAL AMENDMENTS AND MODIFICATIONS OF ENACTMENTS
  120. Chapter 1: AMENDMENTS OF REFERENCES TO REPEALED ENACTMENTS
  121. 86Introduction
  122. 87Amendments of TMA 1970
  123. 88Amendment of ICTA
  124. 89Amendment of TCGA 1992
  125. 90Amendment of FA 1996
  126. 91Amendments of ITTOIA 2005
  127. 92Amendment of the Finance Act 2005
  128. Chapter 2: MODIFICATIONS OF THE TAX ACTS
  129. 93Introduction
  130. 94Modifications of ICTA
  131. 95Modifications of FA 1996
  132. 96Modifications of ITTOIA 2005
  133. Chapter 3: MODIFICATIONS OF TCGA 1992
  134. Preliminary
  135. 97Introduction
  136. General
  137. 98Application of TCGA 1992: general
  138. General modifications of TCGA 1992
  139. 99General modifications: introduction
  140. 100General modification: authorised unit trust
  141. 101General modification: manager of authorised unit trust
  142. 102General modification: unit in authorised unit trust
  143. 103General modification: accumulation units in authorised unit trusts
  144. 104General modification: holder of unit in authorised unit trust
  145. Specific modifications of TCGA 1992
  146. 105Modification of section 99 of TCGA 1992
  147. 106Insertion of section 99AA of TCGA 1992
  148. 107Modification of section 170 of TCGA 1992
  149. 108Modifications of section 272 of TCGA 1992
  150. 109Modifications of section 288 of TCGA 1992
  151. 110Modification of Schedule A1 to TCGA 1992
  152. Part 8: FINAL PROVISIONS
  153. 111Instruments revoked
  154. Signature
  155. Schedule: Abbreviations and Defined Expressions
  156. 1Abbreviations of Acts
  157. 2Index of expressions defined or otherwise explained in these Regulations
  158. Explanatory note