Regulation 2 Transaction designated as an investment transaction

A transaction is designated as an investment transaction for the purposes of section 127 of the Finance Act 1995 (persons not treated as United Kingdom representatives) if conditions A to C are met.

Condition A is that the transaction is a transaction—

Condition B is that the transaction does not give rise to a chargeable gain falling within section 10 of the Taxation of Chargeable Gains Act 1992 (non-resident with United Kingdom branch or agency)^f1.

Condition C is that the transaction does not otherwise fall within section 127(12).

For the purposes of this regulation—

• “Community tradeable emissions allowances” are transferable allowances which relate to the making of emissions of greenhouse gases, and are allocated as part of a system made for the purpose of implementing any Community obligation of the United Kingdom relating to such emissions;

• “Kyoto Protocol” means the Kyoto Protocol to the United Nations Framework Convention on Climate Change signed at Kyoto on 11th December 1997;

• “section 127(12)” means section 127(12) of the Finance Act 1995 (meaning of “investment transaction” for the purposes of determining whether a person is capable of being the UK representative of a non-resident taxpayer); and

• “units” include assigned amount units, certified emission reductions, emission reduction units and removal units.