Explanatory note

These Regulations amend the Investment Trusts (Dividends) (Optional Treatment as Interest Distributions) Regulations 2009 (S.I. 2009/2034) (“the 2009 Regulations”) which enable an investment trust or prospective investment trust (i.e. a company that expects to be approved as an investment trust) to treat its dividends as payments of interest rather than as dividends on shares for tax purposes.

Regulation 1 provides for citation, commencement and effect.

Regulation 2 introduces amendments to the 2009 Regulations.

Regulation 3 revokes regulation 6 of the 2009 Regulations.

Regulation 4 substitutes regulation 12 of the 2009 Regulations so that interest distributions cannot be made in relation to an accounting period for which a company is not approved as an investment trust in accordance with regulations made under section 1159 of Corporation Tax Act 2010.

A Tax Information and Impact Note has not been prepared for this Instrument as it contains no substantive changes to tax policy.