Explanatory note

These Regulations amend the Unauthorised Unit Trust (Tax) Regulations 2013 (S.I. 2013/2819) (the “principal Regulations”).

Regulation 1 provides for citation and commencement; and regulation 2 introduces the amendments.

Regulations 3 and 4 amend regulations 3 and 27 of the principal Regulations by providing that certain unauthorised unit trusts may not be an exempt unauthorised unit trust (under regulation 3) or a non-exempt unauthorised unit trust (under regulation 27). The amendments apply to trusts which, under regulations made under section 1007(2) of the Income Tax Act 2007 (c.29), are not unit trust schemes for the purposes of the definition of “unauthorised unit trust” in section 989 of that Act.

Regulation 5 inserts regulation 29A to the principal Regulations. New regulation 29A provides that section 490 of the Corporation Tax Act 2009 (c.3) (which treats certain holdings as rights under a creditor relationship) does not apply to any rights held by a company under a non-exempt unauthorised unit trust scheme.

A Tax Information and Impact Note covering this Instrument will be published on the HMRC website at http://www.hmrc.gov.uk/thelibrary/tiins.htm.