Paragraph 1 Genuine diversity of ownership

United Kingdom

(1)

Schedule 5AAA to TCGA 1992 is amended as follows.

(2)

In paragraph 7 (appropriate connection)—

(a)

in sub-paragraph (5)—

(i)

in paragraph (a), for “it meets” substitute “the vehicle meets or, if the vehicle is part of multi-vehicle arrangements, the arrangements meet”;

(ii)

in paragraph (b), for “it meets” substitute “the vehicle meets, or those multi-vehicle arrangements meet,”;

(iii)

omit the words after paragraph (b);

(b)

after that sub-paragraph insert—

“(5A)

For the purposes of sub-paragraph (5), those Regulations have effect as if references to a fund included—

(a)

multi-vehicle arrangements, and

(b)

a collective investment vehicle which is not an offshore fund.”;

(c)

after sub-paragraph (7) insert—

“(8)

In this Schedule “multi-vehicle arrangements” means arrangements comprising two or more vehicles under which an investor in one of those vehicles would reasonably regard that investment as an investment in the arrangements as a whole rather than exclusively in any particular vehicle.”

(3)

In paragraph 13 (qualifying conditions)—

(a)

in sub-paragraph (3)—

(i)

in paragraph (a), for “it meets” substitute “the scheme meets or, if the scheme is part of multi-vehicle arrangements, the arrangements meet”;

(ii)

in paragraph (b), for “it meets” substitute “the scheme meets, or those multi-vehicle arrangements meet,”;

(iii)

omit the words after paragraph (b);

(b)

after that sub-paragraph insert—

“(3A)

For the purposes of sub-paragraph (3), those Regulations have effect as if references to a fund included—

(a)

multi-vehicle arrangements, and

(b)

a collective investment scheme which is not an offshore fund.”

(4)

In paragraph 46 (meaning of qualifying investor etc)—

(a)

in sub-paragraph (4)—

(i)

in paragraph (a), for “it meets” substitute “the vehicle meets or, if the vehicle is part of multi-vehicle arrangements, the arrangements meet”;

(ii)

in paragraph (b), for “it meets” substitute “the vehicle meets, or those multi-vehicle arrangements meet,”;

(iii)

omit the words after paragraph (b);

(b)

after that sub-paragraph insert—

“(4A)

For the purposes of sub-paragraph (4), those Regulations have effect as if references to a fund included—

(a)

multi-vehicle arrangements, and

(b)

a collective investment vehicle which is not an offshore fund.”

(5)

In paragraph 46A (application of diversity of ownership condition), after sub-paragraph (3) insert—

“(4)

Where the collective investment vehicle is part of multi-vehicle arrangements, sub-paragraphs (2) and (3) apply as if references to the vehicle included the multi-vehicle arrangements.”

(6)

In paragraph 47 (other definitions), in sub-paragraph (1) at the appropriate place insert—

““multi-vehicle arrangements” has the meaning given by paragraph 7(8);”.

(7)

In paragraph 51 (genuine diversity of ownership condition in case of funds existing before 6 April 2020), after sub-paragraph (2) insert—

“(3)

Where the collective investment vehicle is part of multi-vehicle arrangements, sub-paragraph (2) applies as if references to the vehicle included the multi-vehicle arrangements.”