Regulation 2 Transaction designated as an investment transaction

A transaction is designated as an investment transaction for the purposes of Schedule 26 to the Finance Act 2003 (non-resident companies: transactions through investment manager and others) 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 10B of the Taxation of Chargeable Gains Act 1992^f1 (non-resident company with United Kingdom permanent establishment) (and accordingly taken into account for the purposes of section 11(2A) of the Income and Corporation Taxes Act 1988^f2 (profits attributable to a permanent establishment)).

Condition C is that the transaction does not otherwise fall within paragraph 3(3).

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;

• “paragraph 3(3)” means paragraph 3(3) of Schedule 26 to the Finance Act 2003 (meaning of “investment transaction” for the purposes of determining whether a person is an agent of independent status in respect of investment transactions);

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