Explanatory note

These Regulations, which are made under section 469(7) of the Income and Corporation Taxes Act 1988 and come into force on 1st January 1993, amend the Income Tax (Definition of Unit Trust Scheme) Regulations 1988 (S.I. 1988/267) (“the principal Regulations”).

The Regulations amend regulation 7 of the principal Regulations so as to extend the descriptions of a charitable unit trust scheme to schemes for the establishment of common deposit funds made pursuant to section 22A of the Charities Act 1960 (inserted bysection 16 of the Charities Act 1992). The effect is that such schemes are excepted from the tax treatment of unauthorised unit trust schemes imposed by section 469 of the 1988 Act and are thus able to pass on their income to charities participating in the schemes without deduction of tax.