Regulation 44 Treatment of interest in non-reporting fund: cases where conditions in regulation 42(2) would not be satisfied

(1)

This regulation applies in relation to an asset of an investment trust (“the asset”)—

(a)

which is an interest in a non-reporting fund, but

(b)

in relation to which the conditions in regulation 42(2) would not (apart from this regulation) be satisfied for the whole of the period specified in regulation 42(1)(b) in relation to the asset.

(2)

Paragraph (4) applies if the investment trust, in relation to the asset, reasonably expects to satisfy the conditions in regulation 42(2) for the period beginning with a date to be determined in accordance with paragraph (3) (“the deemed start date”) and ending with the date of the disposal of the asset.

(3)

The deemed start date is a date to be determined by the investment trust which must not be earlier than 1st January 2012.

(4)

The investment trust is treated for all purposes (including for the purposes of determining the beginning of the period mentioned in regulation 42(1)(b)) as if it had, on the deemed start date, disposed of the asset (and not satisfied the conditions in regulation 42(2)) and immediately reacquired the asset for a consideration equal to its market value on the deemed start date.

(5)

The investment trust must notify the Commissioners of the deemed start date by making an appropriate entry in its company tax return for the accounting period in which the deemed start date falls.