Regulation 23 Provisions applying if amounts available for distribution are de minimis
An authorised investment fund is not treated as making a distribution for a distribution period if conditions A to D are met.
Condition A is that, in accordance with rules made by the Financial Services Authority, the authorised investment fund has an agreed de minimis limit.
Condition B is that the authorised investment fund—
has prepared distribution accounts in which the amount shown as available for distribution to participants is a de minimis amount, and
chooses to waive the distribution of that de minimis amount.
Condition C is that the de minimis amount is carried forward to the next distribution period as an amount available for distribution to participants.
Condition D is that none of the units of the authorised investment fund in issue on the distribution date are in bearer form.
If this regulation applies, the authorised investment fund is not required to comply with the requirements of section 234A of ICTAf1 (information relating to distributions) in respect of the de minimis amount for the distribution period in question.
In this regulation—
-
the “de minimis limit”, in relation to an authorised investment fund, means an amount in respect of which a distribution of income of the fund is not required if the total amount shown in the fund’s distribution accounts as available for distribution to participants does not exceed that amount, and
-
“de minimis amount” means an amount falling within the de minimis limit.
Annotations
Footnotes
- f1
-
Section 234A was inserted by section 32(1) of the Finance (No. 2) Act 1992 (c. 48) and amended by paragraph 2(2) of Schedule 37 to the Finance Act 1996 (c. 8).