Regulation 6 Expenditure qualifying for capital allowances—provisions supplementary to regulation 5
Where the rights and interests of a participant in the scheme property become the rights and interests of its successor in the scheme property at the time when a relevant period commences or a cancellation event occurs during a relevant period, those rights and interests shall be treated, for the purposes of regulation 5, as having become the rights and interests of the successor before the commencement of the relevant period or (as the case may be) the occurrence of the cancellation event.
Where the rights and interests of a participant in the scheme property become the rights and interests of its successor in the scheme property at the time when a relevant period ends, those rights and interests shall be treated, for the purposes of regulation 5, as having become the rights and interests of the successor after the end of that period.
Where contributions by participants in the scheme are made at the time when—
a relevant period commences, or
a cancellation event occurs during a relevant period, or
a relevant period ends,
those contributions shall be treated, for the purposes of regulation 5, as having been made before the commencement of the relevant period or the occurrence of the cancellation event, or after the end of the relevant period (as the case may be).
Where during a relevant period the rights and interests of a participant in the scheme property become the rights and interests of its successor in the scheme property at the same time as the trustee of the scheme makes a disposal of any interest or rights in or over an asset which, immediately before that disposal was made, formed part of the scheme property, the disposal shall be treated, for the purposes of regulation 5, as having been made after the participant’s rights and interests in the scheme property have become the successor’s rights and interests in the scheme property.
Where, as a result of a business reorganisation, amalgamation or other form of reconstruction, a merger of participants occurs, that is, the whole of the rights and interests of two or more participants in the scheme property become the whole of the rights and interests of a single participant in the scheme property, then for the purposes of regulation 5—
where the merger occurs at the time when a relevant period commences, it shall be treated as having occurred before that time;
where the merger occurs at the time when a relevant period ends, it shall be treated as having occurred after that time;
where the merger occurs during a relevant period, it shall be treated as never having occurred.
Where, as a result of a business reorganisation, fragmentation or other form of reconstruction, a demerger relating to participants occurs, that is, the whole of the rights and interests of a single participant in the scheme property (“the demerging participant”) become the whole of the rights and interests of two or more participants in the scheme property (“the replacement participants”), then for the purposes of regulation 5—
where the demerger occurs at the time when a relevant period commences or a cancellation event occurs during a relevant period, it shall be treated as having occurred before that time;
where the demerger occurs at the time when a relevant period ends, it shall be treated as having occurred after that time;
where the demerger occurs during a relevant period, the demerging participant shall be treated as having been comprised of participants whose successors are the replacement participants.
For the purposes of paragraph (6)(c), where one of the replacement participants is the demerging participant, that participant shall be treated as if, in its capacity as a replacement participant, it were a separate and distinct participant from the demerging participant.
In paragraph (4) “disposal” shall be construed in accordance with the provisions of Chapter II of Part II of the 1992 Act relating to disposals of assets.
Where during a relevant period of a unit trust scheme it first occurs that the scheme has the characteristics specified in regulation 4(3), that period shall be treated, for the purposes of regulation 5 and this regulation, as having commenced at the time of that first occurrence.