OpenLegislation

Section 103G Exchange of units for those in another collective investment schemeF1C1

United Kingdom

(1)

This section applies in the following cases where units in a collective investment scheme (“collective investment scheme B”) are issued to a person in exchange for units in another collective investment scheme (“collective investment scheme A”).

(2)

The cases are—

  • Case 1

    Where units in collective investment scheme B are issued in exchange for units as the result of a general offer—

    1. (a)

      made to participants in collective investment scheme A or any class of them, and

    2. (b)

      made in the first instance on a condition such that if it were satisfied the property subject to collective investment scheme B would include units in collective investment scheme A giving rights to more than 50% of the capital, and more than 50% of the income, of collective investment scheme A.

  • Case 2

    Where—

    1. (a)

      under an arrangement, participants in collective investment scheme A exchange units in that scheme for units of substantially the same value in collective investment scheme B, and

    2. (b)

      in consequence of the exchanges under the arrangement, 85% or more of the property subject to collective investment scheme B is constituted by units in collective investment scheme A.

(3)

Where this section applies, sections 127 to 131 (share reorganisations etc) apply with the necessary adaptations as if collective investment scheme A and collective investment scheme B were the same company and the exchange were a reorganisation of its share capital.

(4)

This section has effect subject to F2section 103K (anti-avoidance).

Annotations

Textual amendments

F1

Pt. 3 Ch. 4 inserted (8.6.2013) by The Collective Investment Schemes (Tax Transparent Funds, Exchanges, Mergers and Schemes of Reconstruction) Regulations 2013 (S.I. 2013/1400), regs. 1(1), 11 (with reg. 1(2))

F2

Words in s. 103G(4) substituted (with effect in accordance with s. 36(6) of the amending Act) by Finance Act 2026 (c. 11), s. 36(2)(6) (with s. 36(7))

Modifications

C1

S. 103G excluded by Offshore Funds (Tax) Regulation 2009 (S.I. 2009/3001), reg. 36A(2)(a) (as substituted (8.6.2013) by S.I. 2013/1400, regs. 1(1), 15(a) (with reg. 1(2)))

Notes on Part III

Textual amendments

F1

Word in Pt. 3 heading inserted (with effect in accordance with Sch. 22 para. 12 of the amending Act) by Finance Act 2009 (c. 10), Sch. 22 para. 9; S.I. 2010/670, art. 2