Regulation 53 Charge to tax under this Chapter
A participant is charged to tax under this Chapter if the participant owns a substantial QIS holding in a qualified investor scheme.
But a participant is excepted from the charge to tax under this Chapter if the participant is—
a charity within the meaning of section 506(1) of ICTA;
a registered pension scheme within the meaning of Part 4 of the Finance Act 2004f1;
a scheme which is treated, under paragraph 1(1) of Schedule 36 to the Finance Act 2004, as a registered pension scheme within the meaning of Part 4 of that Act;
an insurance company within the meaning of section 431(2) of ICTAf2 holding the units in the qualified investor scheme as assets of its long-term insurance fund;
a friendly society within the meaning of section 466(2) of ICTAf3;
a person for whom any profit on a sale of the units in the qualified investor scheme would be treated as a trading profit of its trade; or
a qualified investor scheme.
In these Regulations a “qualified investor scheme” means a fund, authorised by the Financial Services Authority, in which a statement that the fund is a qualified investor scheme is included in the instrument constituting the scheme.
In paragraph (2)(d) “long-term insurance fund” has the meaning given by section 431(2) of ICTAf4.
Annotations
Footnotes
- f1
- f2
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The definition of “insurance company” in section 431(2) was substituted by Article 26(3) of S.I. 2001/3629.
- f3
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The definition of “friendly society” in section 466(2) was substituted by paragraph 14(4) of Schedule 9 to the Finance (No. 2) Act 1992 (c. 48).
- f4
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The definition of “long-term insurance fund” was inserted (as “long term business fund”) by paragraph 1(2) of Schedule 6 to the Finance Act 1990 (c. 29), and amended by paragraphs 2(1)(b) and 2(2)(a) of Article 52 of S.I. 2001/3629.