Regulation 6 Amendment to regulation 53 (contents of an application)I1

In regulation 53 (contents of an application) in paragraph (1) at the end insert—

“(h)

a statement whether or not the fund intends to operate equalisation arrangements;

(i)

in a case in which the fund does intend to operate equalisation arrangements, a statement whether or not the fund intends to operate full equalisation arrangements;

(j)

in a case in which the fund does not intend to operate equalisation arrangements, a statement specifying whether or not the fund intends to make income adjustments in a reporting period;

(k)

in a case in which the fund intends to make income adjustments in a reporting period, a statement specifying—

(i)

whether the fund intends to make those adjustments on the basis of reported income (see regulation 92A) or on the basis of accounting income (see regulation 92B), and

(ii)

the length of the computation period (see regulation 92C);

(l)

in a case in which the fund intends to make income adjustments in a reporting period on the basis of accounting income—

(i)

a statement by the fund manager specifying how the accounting income is to be determined,

(ii)

a statement by the fund manager that, on the basis of this determination, it is reasonable to expect that the difference between the amount of reported income per unit calculated using this method and the amount of reported income per unit calculated on the basis of reported income will be 10% or less of the latter of those amounts, and

(iii)

an undertaking by the manager to meet the requirements relating to alternative income adjustments and notice to HMRC^f1 (see regulation 92B(5)).”.