Regulation 16 Treatment of certain amounts as distributions

This regulation applies if a non-reporting fund which is a transparent fund has an interest in a reporting fund.

In the case of any excess specified in regulation F194(1) or (2) which is treated, under that regulation, as made to the non-reporting fund, the Tax Acts have effect as if the excess were additional income of the participants in the non-reporting fund in proportion to their rights.

The additional income is treated as arising on the same date as the excess is treated as made to the non-reporting fund.

If a participant in the non-reporting fund is chargeable to income tax, the additional income is charged as relevant foreign income within the meaning given by section 830 of ITTOIA 2005 M1.

If a participant in the non-reporting fund is chargeable to corporation tax, the additional income is charged under Chapter 8 of Part 10 of CTA 2009 (miscellaneous income: income not otherwise charged).