The Offshore Funds (Tax) Regulations 2009

• (4) If the fund does not provide the report to a relevant participant by sending it to the participant by post, the fund must, if so required by the participant, make the report available to the participant in some further manner (whether or not that further manner is also specified in regulation 90(2)) as the fund and the participant may agree.

• (5) The reporting fund must make the report available within a period of six months beginning with the day immediately following the final day of the reporting period.

• (6) The report must be in English.

Meaning of “reporting period”

91

In these Regulations a “reporting period” of a reporting fund means a period determined in accordance with the following rules— First rule If the reporting fund's period of account is twelve months or less, the reporting period is the same as the period of account. Second rule If the reporting fund's period of account is more than twelve months, there are two reporting periods. The first reporting period is a period consisting of the first twelve months of the period of account. The second reporting period is a period consisting of the remainder of the period of account.

Contents of report to participants

92

• (1) In the case of reporting funds which are not transparent funds, the report to participants for a reporting period must include the following information—

• (a) the amount actually distributed to participants per unit of interest in the fund in respect of the reporting period;

• (b) the amount per unit of any excess treated as additional distributions made to participants in the fund in respect of the reporting period;

• (c) the dates on which distributions were made;

• (d) the fund distribution date (see regulation 94(4));

• (e) a statement whether or not the fund remains a reporting fund at the date the fund makes the report available.

• (f) if the fund operates full equalisation arrangements and has not given a statement under regulation 50A(b)(i), the equalisation amount per unit of interest in the fund in relation to any interest acquired by way of initial purchase in the reporting period.

• (2) In these Regulations the “reported income” of a reporting fund for a reporting period means the reportable income of the fund for the reporting period, computed by or on behalf of the fund, and provided, in the report for the reporting period, to the participants in the fund.

• (3) For the purposes of paragraph (1)—

• (a) the amount in paragraph (b) is the amount of any excess specified in regulation 94(1) divided by the number of units in the fund in issue at the end of the reporting period.

• (b) the amount actually distributed to participants per unit of interest in the fund in respect of the reporting period must be computed at the time the distribution is made,

• (ba) subject to paragraphs (3A) and (3B), the fund may chose to calculate the equalisation amount per unit of interest in the fund either on the basis of—

• (i) the sum of all the equalisation amounts in relation to all acquisitions by way of initial purchase in the reporting period divided by the total number of units acquired by way of initial purchase in the period, or

• (ii) the equalisation amount in relation to the acquisition by the participant to whom the report is made available divided by the number of units acquired on that acquisition, and

• (c) the amount per unit of interest in the fund must be expressed to at least four decimal places of a pound (or other currency unit) of value per unit.

• (3A) A fund cannot change the basis for calculating the equalisation amount per unit of interest in the fund more than once in three successive reporting periods.

• (3B) In any reporting period all reports to participants must use the same basis for calculating the equalisation amount per unit of interest in the fund .

• (4) If the amount of the reported income per unit of interest in the fund for the reporting period is equal to, or less than, the amount actually distributed to participants per unit of interest in the fund in respect of the reporting period, the amount to be stated for the purposes of paragraph (1)(b) is nil.

• (5) This regulation is subject to regulation 93.

Lengthy periods of account where full information not available

93

• (1) This regulation applies if a reporting fund—

• (a) has a period of account which is longer than twelve months, and

• (b) has difficulty in computing its reportable income for the reporting period constituting the first twelve months of that period of account (the “relevant reporting period”).

• (2) For the purpose of preparing its report to participants for the relevant reporting period, the fund may elect—

• (a) to compute its reportable income based on such information as is reasonably available, or

• (b) to make a just and reasonable apportionment of the income of the period of account.

• (3) The computation of reportable income for the reporting period following the relevant reporting period must include all amounts not accounted for in the relevant reporting period.

CHAPTER 8 — THE TAX TREATMENT OF PARTICIPANTS IN REPORTING FUNDS

Tax treatment of the reported income of the fund in the hands of participants

Reported income: general provisions

94

• (1) In the case of a reporting fund which is not a transparent fund, the Tax Acts have effect as if the excess (if any) of the reported income of the fund in respect of a reporting period over the distributions made by the fund in respect of the reporting period were additional distributions made to the participants in the fund in proportion to their rights.

• (2) In the case of a reporting fund which is a transparent fund, the Tax Acts have effect as if the excess (if any) of the reported income of the fund in respect of a reporting period over the income of the fund for the reporting period were additional income of the participants in the fund in proportion to their rights.

• (2A) But to the extent that the participant’s rights in the fund are rights to which regulation 30 (rights in certain existing holdings) applies, the excess specified in paragraphs (1) and (2) shall be reduced proportionately.

• (3) The excess specified in paragraphs (1) and (2) is treated as made, on the fund distribution date, or on such earlier date as the reported income in respect of that reporting period is recognised in the participant’s accounts, to participants holding an interest in the fund at the end of the reporting period.

• (3A) If—

• (a) a participant disposes of an interest in a reporting fund in a reporting period (“the earlier period”), and

• (b) section 106A of TCGA 1992 (identification of securities: capital gains tax) applies to identify the whole or any part of that interest with an interest acquired in the next reporting period,

then, for the purposes of paragraph (3), the disposal of the interest so identified shall be ignored and the participant shall be treated as holding that interest at the end of the earlier period.

• (4) In these Regulations the “fund distribution date” for a reporting period of a reporting fund means the date six months following the last day of the reporting period.

Participants chargeable to income tax: corporate funds

95

• (1) This regulation applies if—

• (a) a reporting fund makes a distribution to a participant chargeable to income tax in respect of a reporting period, and

• (b) the fund falls within section 40A(2)(a) of FA 2008 .

• (2) This regulation also applies if some or all of the excess specified in regulation 94(1) is treated as made by such a fund to such a participant.

• (3) If section 378A of ITTOIA 2005 (offshore fund distributions) applies to any amount falling within paragraph (1) or (2), the amount is charged to income tax in accordance with that section.

• (4) If paragraph (3) does not apply to any amount falling within paragraph (1) or (2), but the participant is entitled to a tax credit on receiving a distribution falling within paragraph (1), section 397A of ITTOIA 2005 (savings and investment income: dividends from non-UK resident companies) also applies to the excess falling within paragraph (2).

Participants chargeable to income tax: other non-transparent funds

96

• (1) This regulation applies if—

• (a) a reporting fund makes a distribution to a participant chargeable to income tax in respect of a reporting period,

• (b) the fund falls within paragraph (b) or (c) of section 40A(2) of FA 2008, and

• (c) the fund is not a transparent fund.

• (2) This regulation also applies if some or all of the excess specified in regulation 94(1) is treated as made by such a fund to such a participant.

• (3) Any amount to which paragraph (1) or (2) applies is charged to income tax—

• (a) under section 378A of ITTOIA 2005 (offshore fund distributions), or

• (b) (if that section does not apply) under Chapter 8 of Part 5 of ITTOIA 2005 (miscellaneous income: income not otherwise charged) for the year of assessment in which the distribution is made, but sections 688(1) and 689 of ITTOIA 2005 (income charged and person liable) do not apply.

Participants chargeable to income tax: transparent funds

97

• (1) This regulation applies if—

• (a) a reporting fund is a transparent fund, and

• (b) some or all of the excess specified in regulation 94(2) is treated as income of a participant by virtue of that provision.

• (2) Any amount to which paragraph (1) applies is charged to income tax under Chapter 8 of Part 5 of ITTOIA 2005 as relevant foreign income within the meaning given by section 830 of ITTOIA 2005 for the year of assessment in which the distribution is made, but sections 688(1) and 689 of ITTOIA 2005 do not apply.

Participants chargeable to corporation tax

98

• (1) This regulation applies if some or all of the excess specified in regulation 94 is treated as made to a participant chargeable to corporation tax.

• (2) The amount is exempt if it would be exempt if it were an actual distribution made by the fund.

Disposals and deemed disposals of interests

Disposals of interests

99

• (1) Subject to paragraph (7), if a participant has an interest in a reporting fund and disposes of the interest, the participant disposes of an asset for the purposes of tax in respect of chargeable gains.

• (2) For the purposes of the disposal referred to in paragraph (1), an amount equal to the accumulated undistributed income is treated as expenditure—

• (a) given for the acquisition of the asset, and

• (b) falling within section 38(1)(a) of TCGA 1992 (acquisition and disposal costs).

• (2A) But where regulation 94A has applied, the expenditure given for the acquisition of the asset shall be treated as reduced by an amount equal to the amount of any reduction in the actual distribution under regulation 94A(2).

• (3) In paragraph (2) the “accumulated undistributed income” means the aggregate of amounts specified in regulation 94 on which the participant has been charged to tax under any of regulations 95 to 98.

• (4) The expenditure mentioned in paragraph (2) is treated as incurred, in the case of each amount referred to in paragraph (3), on the fund distribution date for the reporting period in respect of which the amount is treated as distributed.

• (5) But if the participant receives an amount in respect of the interest in the reporting fund which is chargeable to income tax, and that amount is received (or treated as received) after the date of the disposal referred to in paragraph (1), the amount is treated as received immediately before that disposal for the purposes of tax in respect of chargeable gains.

• (6) This regulation is subject to regulation 17.

• (7) This regulation does not apply where section 103D of TCGA 1992 (application of Act to tax transparent funds) applies.

Deemed disposals of interests

100

• (1) This regulation applies if an offshore fund ceases to be a reporting fund and becomes a non-reporting fund.

• (2) A participant in the fund may make an election to be treated for the purposes of TCGA 1992—

• (a) as disposing of an interest in the reporting fund at the end of that fund's final period of account, and

• (b) as acquiring an interest in the non-reporting fund at the beginning of that fund's first period of account.

This is subject to paragraph (3).

• (3) The election mentioned in paragraph (2) may only be made if a report has been made available to the participant under regulation 90 for the reporting fund's final period of account.

• (4) The disposal referred to in paragraph (2)(a) is treated as made for a consideration equal to the net asset value of the participant's interest in the fund at the end of the period of account for which the final reported income is reported to the participant.

• (5) The acquisition referred to in paragraph (2)(b) is treated as made for the same amount as the disposal referred to in paragraph (2)(a).

• (6) If the participant is chargeable to income tax, the election mentioned in paragraph (2) must be made by being included in a return made for the tax year which includes the disposal date.

• (7) If the participant is chargeable to corporation tax, the election mentioned in paragraph (2) must be made by being included in the participant's company tax return for the accounting period which includes the disposal date.

• (8) In this regulation—

• “company tax return” has the same meaning as in Schedule 18 to the Finance Act 1998 ;

• “disposal date” means the final day of the reporting fund's final period of account.

Charitable companies and charitable trusts

Special provisions applying to charitable companies and charitable trusts

101

• (1) This regulation applies if—

• (a) a charitable company is a participant in a reporting fund, or

• (b) the trustees of a charitable trust are participants in a reporting fund.

• (2) No liability to tax arises in respect of any amount which, under regulation 94(1), is treated as distributed to a charitable company or the trustees of a charitable trust.

• (3) Paragraph (2) of regulation 99 (read with paragraphs (3) and (4) of that regulation) does not apply to the disposal of an interest in a reporting fund by a charitable company or the trustees of a charitable trust.

• (4) In this regulation “charity” and “charitable company” have the same meaning as in section 506 of ICTA .

Anti-avoidance provisions

Treatment of financial traders if conditions specified in regulation 73 are met

102

• (1) This group of regulations applies if a financial trader holds, or has held, an interest in a diversely owned fund.

• (2) In this Chapter—

• “this group of regulations” means this regulation and regulations 103 to 105;

• “financial trader” has the meaning given by regulation 105.

• (3) In computing the trading profits or losses of the financial trader for the relevant period, the following amounts must be brought into account—

• (a) all distributions received by or credited to the financial trader in respect of the interest for the relevant period, and

• (b) any amount required to be brought into account under regulation 103.

• (4) In this group of regulations “relevant period” means—

• (a) in the case of a financial trader within the charge to income tax, a period of account, and

• (b) in the case of a financial trader within the charge to corporation tax, an accounting period.

• (5) In this group of regulations references to distributions are subject to section 130 of CTA 2009 (insurers receiving distributions etc).

Amounts brought into account in computing trading profits or losses of financial traders

103

• (1) The only amounts that may be brought into account in computing the trading profits or losses of the financial trader in respect of the interest in the reporting fund for the relevant period are—

• (a) amounts within regulation 102(3)(a), and

• (b) amounts brought into account in accordance with Cases A to D.

• (2) Paragraph (1) is subject to section 130 of CTA 2009 and to regulation 104.

• (3) Case A applies if the financial trader holds the interest at the beginning of the relevant period and continues to hold the interest throughout the relevant period. If Case A applies, the amount to be brought into account is the difference between the market value of the interest at the end of the relevant period and the market value of the interest at the end of the period immediately preceding the relevant period.

• (4) Case B applies if the financial trader acquires the interest during the relevant period and continues to hold the interest throughout the remainder of the relevant period. If Case B applies, the amount to be brought into account is the difference between the market value of the interest at the end of the relevant period and the acquisition cost of the interest.

• (5) Case C applies if the financial trader holds the interest at the beginning of the relevant period and disposes of the interest during the period. If Case C applies the amount to be brought into account is the difference between the disposal value of the interest and the market value of the interest at the end of the period immediately preceding the relevant period.

• (6) Case D applies if the financial trader acquires and disposes of the interest during the relevant period. If Case D applies the amount to be brought into account is the difference between the disposal value of the interest and its acquisition cost.

Interests not within regulation 103

104

• (1) Regulation 103 does not apply in respect of an interest in a reporting fund if—

• (a) conditions A and B are met, or

• (b) condition C is met.

• (2) Condition A is that the interest forms part of the financial trader's stock in trade and all the profits and losses, including distributions, arising in respect of the interest are included in the computation of the financial trader's trading profits for the relevant period.

• (3) Condition B is that the interest is accounted for under generally accepted accounting practice on the basis of fair value accounting.

• (4) Condition C is that the interest is a relevant holding in respect of which the provisions of section 490 of CTA 2009 (holdings in OEICs, unit trusts and offshore funds treated as creditor relationship rights) apply in relation to the financial trader.

• (5) In paragraph (4) a “relevant holding” means—

• (a) any rights under a unit trust scheme,

• (b) an interest in an offshore fund, or

• (c) any shares in an open-ended investment company.

Meaning of “financial trader”

105

• (1) In this Chapter “financial trader” means a person who is carrying on a business which is—

• (a) a banking business,

• (b) an insurance business, or

• (c) a business consisting wholly or in part of dealing in trading assets such that any profit on such assets would form part of the trading profits of that business.

This is subject to paragraphs (2) and (3).

• (2) For the purposes of paragraph (1)(b) an insurance business does not include life assurance business carried on by an insurance company and if such a company carries on both life assurance business and any other insurance business the company must not be treated as a financial trader in respect of the life assurance business.

• (3) If—

• (a) a financial trader (“A”) directly or indirectly transfers trading assets to a diversely owned fund under, or as part of, an arrangement which has an unallowable purpose, and

• (b) a connected person (“B”)—

• (i) holds an interest in the diversely owned fund at the time of the transfer, or

• (ii) directly or indirectly acquires an interest in the diversely owned fund at a later time,

B is treated as being a financial trader in relation to that interest.

• (4) In this regulation “trading assets” means—

• (a) stocks or shares;

• (b) a relevant contract (construed in accordance with regulations 82 to 86);

• (c) a loan relationship (construed in accordance with regulation 87);

• (d) units in a collective investment scheme (construed in accordance with regulation 88);

• (e) securities of any description not falling within any of sub-paragraphs (a) to (d);

• (f) foreign currency; or

• (g) a carbon emission trading product (construed in accordance with regulation 89);

a profit on the sale of which would form part of the trading profits of the financial trader.

• (5) An arrangement includes any scheme, understanding or transaction of any kind, whether or not legally enforceable and whether involving a single transaction or two or more transactions.

• (6) An arrangement has an unallowable purpose if the main purpose or one of the main purposes for either A or B being party to the arrangement is to obtain a tax advantage or an income tax advantage for any person.

• (7) In paragraph (6)—

• “tax advantage” has the meaning given by section of 840ZA of ICTA ;

• “income tax advantage” has the meaning given by section 683 of ITA 2007.

CHAPTER 9 — THE PROVISION OF INFORMATION TO HMRC

Reporting requirements

106

• (1) A reporting fund must provide the following information to HMRC in relation to each period of account—

• (a) subject to paragraph (3), its audited accounts ...;

• (b) its computation of its reportable income for the period of account based on its audited accounts (see Chapter 5 or 6A, as the case may be);

• (c) a copy of the report made available to participants for each reporting period falling within the period of account (including, for each reporting period, the information specified in regulation 92(1) or 92D, as the case may be);

• (d) the reported income of the fund for each reporting period falling within the period of account;

• (e) the amount actually distributed to participants in respect of each reporting period falling within the period of account;

• (f) the number of units in the fund in issue at the end of each reporting period falling within the period of account;

• (g) the amount of the reported income per unit of interest in the fund in respect of each reporting period falling within the period of account;

• (h) a declaration confirming that the fund has complied with the obligations specified in regulations 53 and 58.

• (2) The information specified in paragraph (1) must be provided within six months of the end of the period of account.

• (3) A reporting fund may provide unaudited accounts for a period of account if HMRC are satisfied, in relation to that period, that—

• (a) it would be impossible to provide audited accounts or unreasonable to expect them to be provided, and

• (b) there is no reason to believe that the unaudited accounts cannot be relied upon for the purposes of calculating reportable income.

Information obligations of reporting funds

107

• (1) HMRC may give notice requiring a reporting fund or its managers, within such time, not being less than 42 days, as is specified in the notice, to provide any information, particulars or documents, in the possession or power of the reporting fund or its managers, as HMRC may reasonably require for the purposes of determining whether the fund has met, or continues to meet, its obligations under Chapter 3 of this Part.

• (2) Before a notice is given to a reporting fund by HMRC under paragraph (1), the fund must have been given a reasonable opportunity to deliver the information, particulars or documents, or to make them available (the “initial request”); and HMRC must not give notice under paragraph (1) until the initial request has been given to the fund.

• (3) HMRC must give the initial request to the reporting fund or its manager within a period of one year beginning with the day that the fund provides the information specified in regulation 106(1).

• (4) HMRC may extend the time specified in paragraph (1) if they consider it reasonable to do so.

• (5) A person to whom a notice under paragraph (1) is given may appeal.

• (6) The notice of appeal must be given to HMRC within a period of 42 days beginning with the day on which the notice under paragraph (1) is given.

• (7) On an appeal, the tribunal may uphold, vary or quash the notice.

CHAPTER 10 — BREACHES OF REPORTING FUND REQUIREMENTS

Types of breaches

108

• (1) This Chapter applies if a reporting fund is in breach of a requirement imposed in this Part.

• (2) A breach of a requirement imposed in this Part is—

• (a) a minor breach, or

• (b) a serious breach.

• (3) For the purposes of these Regulations, a breach of a requirement imposed in this Part is a “serious breach” if it is—

• (a) a breach specified as a serious breach in a provision of this Chapter, or

• (b) a breach which is not a minor breach.

• (4) For the purposes of these Regulations, a breach of a requirement imposed in this Part is a “minor breach” if it is a breach (other than a breach specified as a serious breach in a provision of this Chapter)—

• (a) for which there is a reasonable excuse, or

• (b) which is inadvertent and remedied as soon as reasonably possible.

This paragraph is subject to the following provisions of this regulation.

• (5) For the purposes of this Part a minor breach is not regarded as a breach if the reporting fund corrects the breach without any HMRC intervention.

• (6) For the purposes of these Regulations there is an “HMRC intervention” in relation to a reporting fund if HMRC request the fund to provide them with information relating to a requirement imposed in this Part. This is subject to paragraph (7).

• (7) There is no HMRC intervention in relation to a reporting fund if—

• (a) the fund takes the initiative to correct a minor breach, and

• (b) HMRC request the fund to provide them with information so that they may deal with the initiative taken.

• (8) Regulation 109 deals with the consequences of minor breaches.

• (9) Regulation 114 deals with the consequences of serious breaches.

Consequences of minor breaches

109

• (1) If a reporting fund is in breach of a requirement imposed in this Part and the breach is a minor breach, the fund continues to be treated as a reporting fund.

• (2) Paragraph (1) is subject to the following provisions of this Chapter.

• (3) If paragraph (1) applies on four separate occasions in a period of ten years beginning with the first day of the period of account in which the first breach occurs, the fourth breach is a serious breach.

• (4) If a single event results in more than one minor breach within a single period of account, there is only one minor breach in that period of account for the purposes of this Chapter.

Differences between reported income and reportable income

110

• (1) This regulation applies if there is a difference between—

• (a) the reportable income of a reporting fund for a period of account, and

• (b) the reported income of the fund for all reporting periods comprised in the period of account.

• (2) The following amounts must be determined for each reporting period comprised in the period of account—

• (a) the amount of the reported income for the reporting period, and

• (b) the amount of the reportable income for the period of account that is referable to that reporting period.

• (3) If the difference between the two amounts specified in paragraph (2) is 10% or less of the reportable income, there is no breach of a requirement imposed in this Part.

• (4) If the difference between the two amounts specified in paragraph (2) is more than 10% but not more than 15% of the reportable income—

• (a) an amount equal to the difference must be added to the reported income—

• (i) for the reporting period in which the error is established, or

• (ii) for the following reporting period; or

• (b) the reporting fund must make a supplementary report for the period of account in which the difference occurs before the end of a period of three months beginning immediately after the period of account in which the error is established.

• (5) If the difference between the two amounts specified in paragraph (2) is more than 15% of the reportable income, the reporting fund must make a supplementary report to participants for the period of account in which the difference occurs before the end of a period of three months beginning immediately after the period of account in which the error is established.

• (6) The supplementary report mentioned in paragraphs (4) and (5) must be made to those persons who were participants in the fund at the end of the period of account in which the difference occurs.

• (7) If paragraph (4) or (5) applies and the action specified in the applicable paragraph is taken as soon as reasonably possible, there is a minor breach.

• (8) If paragraph (4) or (5) applies but the action specified in the applicable paragraph is not taken as soon as reasonably possible, there is a serious breach.

• (9) For the purposes of paragraph (4) an error is established for a reporting period if, during that reporting period—

• (a) HMRC conclude—

• (i) that an error has been made in respect of an earlier reporting period, and

• (ii) that, as a result of the error, the difference between the reported income for the reporting period and the reportable income for the period of account in which the reporting period is comprised is more than 10% but not more than 15%; and

• (b) HMRC give notice to the reporting fund of the matters specified in sub-paragraph (a).

• (10) For the purposes of paragraph (5) an error is established for a period of account if, during that period of account—

• (a) HMRC conclude—

• (i) that an error has been made in respect of an earlier period of account, and

• (ii) that, as a result of the error, the difference between the reported income and the reportable income for the period of account is more than 15%; and

• (b) HMRC give notice to the reporting fund of the matters specified in sub-paragraph (a).

Provision of report that is incorrect or incomplete

111

• (1) This regulation applies if—

• (a) a reporting fund provides a report specified in paragraph (2) that is incorrect or incomplete, and

• (b) regulation 110 does not apply.

• (2) The reports specified are—

• (a) the report to participants in accordance with the requirements of Chapter 7 of this Part, and

• (b) the report to HMRC in accordance with the requirements of Chapter 9 of this Part.

• (3) If the reporting fund provides a correct report as soon as reasonably possible, there is a minor breach.

• (4) If the reporting fund does not provide a correct report as soon as reasonably possible, there is a serious breach.

Cases where information is not provided

112

• (1) This regulation applies if, on the relevant date, a reporting fund has not provided—

• (a) the information specified in regulation 106(1) to HMRC in relation to a period of account (the “requisite period of account”), and

• (b) a report to each participant for each reporting period comprised in the requisite period of account.

• (2) In paragraph (1) the “relevant date” means the day immediately following the expiry of the period of six months beginning immediately after the end of the requisite period of account.

• (3) If the reporting fund provides the information mentioned in paragraph (1)(a) and the reports mentioned in paragraph (1)(b) within a period of four months beginning with the relevant date, the breach is not regarded as a breach for the purposes of this Part.

• (4) If the reporting fund does not provide the information mentioned in paragraph (1)(a) and the reports mentioned in paragraph (1)(b) within a period of four months beginning with the relevant date but does provide that information and those reports within a period of twelve months beginning with the relevant date, there is a minor breach.

• (5) If the reporting fund does not provide the information mentioned in paragraph (1)(a) and the reports mentioned in paragraph (1)(b) within a period of twelve months beginning with the relevant date, there is a serious breach.

Serious breaches

113

• (1) There is a serious breach if condition A, B, C or D is met.

• (2) Condition A is that a period of account of a reporting fund exceeds 18 months.

• (3) Condition B is that a reporting fund has used an accounting practice which—

• (a) is not in accordance with international accounting standards, and

• (b) has not been approved by HMRC (see regulations 53, 55 and 61).

• (4) Condition C is that—

• (a) a reporting fund fails, or its managers fail, to provide the information, particulars or documents within the time specified in a notice given under regulation 107(1), and

• (b) there is no appeal against the notice within the time specified in regulation 107(6).

• (5) Condition D is that—

• (a) on an appeal against a notice given under regulation 107(1), the tribunal varies the notice,

• (b) a reporting fund fails, or its managers fail, to provide the information, particulars or documents within the time specified in the notice (as so varied), and

• (c) there is no appeal against the decision of the tribunal.

Consequences of serious breaches

114

• (1) This regulation applies if conditions A and B are met.

• (2) Condition A is that—

• (a) a reporting fund is in breach of a requirement imposed in this Part, and

• (b) the breach is a serious breach.

• (3) Condition B is that HMRC give notice to the fund—

• (a) stating that the fund is in breach of a requirement imposed in this Part and that the breach is a serious breach, and

• (b) specifying the serious breach.

• (4) The fund is treated as a non-reporting fund for the reporting period in which HMRC give the notice and for all subsequent periods. This is subject to paragraphs (5) and (6).

• (5) If regulation 113(4) applies, the fund is treated as a non-reporting fund for the reporting period in which the notice is given and for all subsequent periods.

• (6) If regulation 113(5) applies, the fund is treated as a non-reporting fund for the reporting period in which the notice as varied is given and for all subsequent periods.

Appeal against exclusion from the reporting fund regime

115

• (1) If HMRC give notice to a fund under regulation 114(3) (an “exclusion notice”), the fund may appeal.

• (2) The notice of appeal must be given to HMRC within a period of 42 days beginning with the day on which the exclusion notice is given.

• (3) On an appeal, the tribunal may uphold or quash the exclusion notice.

CHAPTER 11 — LEAVING THE REPORTING FUND REGIME

Termination by notice given by reporting fund

116

• (1) If a reporting fund gives a notice under this regulation specifying a day (the “specified day”) at the end of which this Part is to cease to apply to the fund, this Part shall cease to apply to the fund at the end of that day.

• (2) The specified day must be the last day of a period of account of the reporting fund.

• (3) A notice under paragraph (1) must be given in writing to HMRC before the specified day.

• (4) If the fund gives a notice under paragraph (1), the fund must also make the notice available to each participant before the specified day.

• (5) Paragraphs (2) to (4) of regulation 90 apply to determine whether the notice is made available to a participant in the same way as they apply to determine whether a report for a reporting period is made available to a participant.

• (6) This regulation is subject to regulation 117.

Reporting fund not complying with requirements

117

• (1) This regulation applies if—

• (a) a reporting fund gives a notice under regulation 116, and

• (b) the fund has not complied with all requirements imposed in this Part for all periods during which it was a reporting fund.

• (2) For the purposes of these Regulations the fund is treated as a fund to which regulation 114 has applied and not as a fund to which regulation 116 has applied.

CHAPTER 12 — CONSTANT NAV FUNDS

Interpretation

Meaning of “constant NAV fund”

118

• (1) In these Regulations a “constant NAV fund” means an offshore fund that meets conditions A and B.

• (2) Condition A is that the net asset value of the fund (expressed in the currency in which units are issued) will not fluctuate by more than an insignificant amount throughout the fund's existence.

• (3) Condition B is that condition A is met as a result of—

• (a) the nature of the fund's assets, and

• (b) the frequency with which the fund distributes its income.

Modified application of this Part

General

119

In the case of a constant NAV fund, Chapters 2 to 11 of this Part apply with the following modifications.

Modified application of Chapter 2

120

• (1) Chapter 2 applies with the following modifications.

• (2) In regulation 53 for paragraph (1) substitute—

(1) An application must include the following— (a) a statement of the first period of account for which it is proposed that the fund should be treated as a constant NAV fund for the purposes of these Regulations, (b) a statement that the fund is, or will be, a constant NAV fund at the beginning of that first period of account, and (c) an undertaking to notify HMRC if the offshore fund ceases to be a constant NAV fund.

• (3) Regulations 55 and 56 do not apply.

Modified application of Chapter 3

121

• (1) Chapter 3 applies with the following modifications.

• (2) For regulation 57 substitute—

(57A) (1) Unless HMRC reject an application because an item specified in regulation 53(1) has not been supplied, the offshore fund becomes a constant NAV fund on whichever is the later of— (a) the first day of the first period of account mentioned in regulation 53(1)(a), or (b) the day on which the fund is established. (2) This Part applies to the constant NAV fund and to its participants on and after the date specified in paragraph (1). (3) Once this Part has begun to apply to a constant NAV fund, it shall continue to apply unless and until the fund notifies HMRC that it has ceased to be a constant NAV fund. (4) See regulation 108A for the consequences where the net asset value of the fund has risen by more than an insignificant amount and the fund has not notified HMRC that it has ceased to be a constant NAV fund.

• (3) Regulation 58 does not apply.

Disapplication of Chapters 4 to 9

122

Chapters 4 to 9 do not apply.

Modified application of Chapter 10

123

For regulations 108 to 115 substitute—

(108A) (1) This regulation applies if— (a) this Part applies to a constant NAV fund, (b) the net asset value of the fund (expressed in the currency in which units are issued) has risen by more than an insignificant amount, and (c) the fund has not notified HMRC that it has ceased to be a constant NAV fund. (2) But this regulation does not apply if the net asset value of a constant NAV fund (expressed in the currency in which units are issued) has fallen by more than an insignificant amount. (3) A participant who disposes of an interest in the fund and who makes a chargeable gain on the disposal is treated as making an offshore income gain.

Disapplication of Chapter 11

124

Chapter 11 does not apply.

PART 4 — CONSEQUENTIAL AMENDMENTS

Amendment of the Inheritance Tax Act 1984

125

In section 174(1)(a) of the Inheritance Tax Act 1984 (income tax and unpaid inheritance tax) for “Chapter V of Part XVII of the Taxes Act 1988, arising on a disposal which is deemed to occur on the death by virtue of section 757(3) of that Act” substitute “ regulations made under section 41(1) of the Finance Act 2008, arising on a disposal which is deemed, under such regulations (see regulation 34 of the Offshore Funds (Tax) Regulations 2009 (S.I. 2009/3001)), to occur on the death ”.

Amendment of ICTA

126

• (1) ICTA is amended as follows.

• (2) In section 396(2) (Case VI losses) for “section 761(1)(b)(ii)” substitute “ regulation 18(4) of the Offshore Funds (Tax) Regulations 2009 (S.I. 2009/3001) ”.

• (3) In section 505(3)(b)(iii) (charitable companies) for “section 761(6) below” substitute “ regulation 31 of the Offshore Funds (Tax) Regulations 2009 (S.I. 2009/3001) ”.

• (4) In section 587B(9) (gifts of shares, securities and real property to charities etc.), in the definition of “offshore fund”, for “Chapter 5 of Part 17” substitute “ section 40A of the Finance Act 2008 ”.

• (5) In section 834A (miscellaneous charges relating to the former Case VI of Schedule D)—

• (a) in Part 1 of the Table omit the entry relating to section 761(1)(b)(ii), and

• (b) in Part 3 of the Table insert at the end—

Regulation 18(4) of the Offshore Funds (Tax) Regulations 2009 (S.I. 2009/3001)	Offshore income gains

• (6) In section 842(3A) (meaning of investment trust) for “section 761(1)(a)” substitute “ regulation 18(1) of the Offshore Funds (Tax) Regulations 2009 (S.I. 2009/3001) ”.

Amendment of TCGA 1992

127

• (1) TCGA 1992 is amended as follows.

• (2) In section 108(1)(c) (identification of relevant securities for corporation tax)—

• (a) omit “, or have at any time been,”, and

• (b) for “material interests in a non-qualifying offshore fund, within the meaning of Chapter V of Part XVII of that Act” substitute “ interests in a non-reporting fund, within the meaning of regulations made under section 41(1) of the Finance Act 2008 (see Part 2 of the Offshore Funds (Tax) Regulations 2009 (S.I. 2009/3001)) ”.

• (3) In section 212 (annual deemed disposal of holdings of unit trusts, etc.)—

• (a) in subsection (1)(b) for “relevant interests in an offshore fund” substitute “ interests in an offshore fund within the meaning of section 40A of the Finance Act 2008 ”, and

• (b) omit subsections (5) to (7).

• (4) In paragraph 7 of Schedule 7AD (gains of insurance company from venture capital investment partnership: disposal of partnership asset giving rise to offshore income gain)—

• (a) in sub-paragraph (1) for “Chapter 5 of Part 17 of the Taxes Act (offshore funds)” substitute “ regulations made under section 41(1) of the Finance Act 2008 (see the Offshore Funds (Tax) Regulations 2009 (S.I. 2009/3001)) ”, and

• (b) in sub-paragraph (2) for “that Chapter” substitute “ such regulations ”.

Amendment of ITTOIA 2005

128

• (1) ITTOIA 2005 is amended as follows.

• (2) In section 378A(7) , (offshore fund distributions), in the definition of “offshore fund”, for “Chapter 5 of Part 17 of ICTA (see sections 756A to 756C of that Act)” substitute “ section 40A of FA 2008 ”.

• (3) In section 632 (offshore income gains)—

• (a) in subsection (2) for “section 761(1) of ICTA (charge to income tax of offshore income gain)” substitute “ regulation 17 of the Offshore Funds (Tax) Regulations 2009 (S.I. 2009/3001) (charge to tax) ” , and

• (b) in subsection (3) for “Chapter 5 of Part 17 of ICTA (charge to income tax of offshore income gains)” substitute “ Chapter 5 of Part 2 of those Regulations ”.

• (4) In section 830(4) (meaning of “relevant foreign income”) for paragraph (aa) substitute—

(aa) regulation 19 of the Offshore Funds (Tax) Regulations 2009 (S.I. 2009/3001),

Amendment of ITA 2007

129

• (1) ITA 2007 is amended as follows.

• (2) In section 152(8) (losses from miscellaneous transactions) for “section 761(1)(b)(i) of ICTA” substitute “ regulation 17 of the Offshore Funds (Tax) Regulations 2009 (S.I. 2009/3001) ”.

• (3) In section 482 (types of amount to be charged at special rates for trustees), in the description of “Type 3”, for “section 761(1) of ICTA (offshore income gains)” substitute “ regulation 17 of the Offshore Funds (Tax) Regulations 2009 (S.I. 2009/3001) ”.

• (4) In section 535 (exemption for offshore income gains)—

• (a) in subsection (3) for “Chapter 5 of Part 17 of ICTA (offshore funds) (see section 758 of, and Schedule 28 to, that Act)” substitute “ Chapter 5 of Part 2 of the Offshore (Tax) Funds Regulations 2009 (S.I. 2009/3001) ”, and

• (b) in subsection (4) for “section 761(6B) of ICTA” substitute “ regulation 31(3) to (5) of the Offshore Funds (Tax) Regulations 2009 (S.I. 2009/3001) ”.

• (5) In section 734(5) (reduction in amount charged: previous capital gains tax charge) for “section 762 of ICTA” substitute “ regulations 20 and 22 to 24 of the Offshore Funds (Tax) Regulations 2009 (S.I. 2009/3001) ”.

• (6) In section 1016(2) (table of provisions to which this section applies), in Part 3 of the Table—

• (a) omit the entry relating to section 761(1)(b)(i) of ICTA, and

• (b) at the end insert—

Regulation 17 of the Offshore Funds (Tax) Regulations 2009 (S.I. 2009/3001)	Offshore income gains

Amendment of FA 2008

130

• (1) Schedule 7 to FA 2008 (remittance basis) is amended as follows.

• (2) In paragraph 100(1)(a)—

• (a) for “section 762 of ICTA” substitute “ regulation 20 of the Offshore Funds (Tax) Regulations 2009 (S.I. 2009/3001) ”,

• (b) for “section 761 of ICTA” substitute “ such regulations (regulation 17 of those Regulations ”.

• (3) In paragraph 101(1)(b)—

• (a) for “section 761 of ICTA” substitute “ regulation 17 of the Offshore Funds (Tax) Regulations 2009 (S.I. 2009/3001) ”,

• (b) for “section 762 of ICTA” substitute “ regulation 20 of those Regulations ”.

• (4) In paragraph 102(1)(d)—

• (a) for “section 762 of ICTA” substitute “ regulation 20 of the Offshore Funds (Tax) Regulations 2009 (S.I. 2009/3001) ”,

• (b) for “section 761 of ICTA” substitute “ such regulations (regulation 17 of those Regulations ”.

Amendment of CTA 2009

131

• (1) CTA 2009 is amended as follows.

• (2) For the text of section 489 (meaning of “offshore fund” etc.) substitute—

Sections 40A to 40G of FA 2008 (meaning of “offshore fund” and application to parts of umbrella funds and classes of interests in offshore funds) apply for the purposes of this Chapter as they apply for the purposes of sections 40A to 42A of that Act.

• (3) In section 490(1)(a)(iii) (holdings in OEICs, unit trusts and offshore funds treated as creditor relationship rights) for “a material interest” substitute “ an interest ”.

SCHEDULE 1 — Transitional Provisions and Savings

1

In this Schedule—

• “distributing fund” means a fund which, immediately before 1st December 2009, was a distributing fund for the purposes of Chapter 5 of Part 17 of ICTA or a fund treated as a distributing fund in accordance with paragraph 3(3A);

• “existing fund” means a fund to which, immediately before 1st December 2009, section 756A of ICTA applied;

• “non-qualifying fund” means a fund which, immediately before 1st December 2009, was a non-qualifying fund for the purposes of Chapter 5 of Part 17 of ICTA; the “overlap period” means the period of account of an existing fund which has begun, but not ended, on the day these Regulations come into force; the “succeeding period” means the period of account of the fund immediately following the overlap period.

2

• (1) This paragraph applies in the case of an existing fund which, on 1st December 2009, becomes a non-reporting fund.

• (2) A participant begins to have an interest in the non-reporting fund at the beginning of the accounting period of the non-reporting fund current on 1st December 2009.

• (3) An offshore income gain arising to a person on the disposal of an asset must be computed in accordance with Part 2, but is to have regard to the entirety of the period of the person's ownership of the asset.

3

• (1) This paragraph applies in the case of an existing fund and umbrella arrangements but is subject to paragraph (3B).

• (2) The fund or any person within paragraph 18(1) of Schedule 27 to ICTA may apply in writing to HMRC for the fund to be treated as a distributing fund in respect of the overlap period or any earlier period of account.

• (3) If the fund or any person within paragraph 18(1) of Schedule 27 to ICTA has made a successful application under sub-paragraph (2), the fund or that person may apply in writing to HMRC for the fund to be continued to be treated as a distributing fund in respect of the succeeding period.

• (3ZA) But no application may be made under paragraph (3) if HMRC have accepted an application for Part 3 to apply to the fund.

• (3A) Where an existing fund is part of umbrella arrangements (within the meaning of section 40C of FA 2008) or is part of arrangements comprising more than one class of interest (within the meaning of section 40D of FA 2008), separate arrangements under the umbrella arrangements, and each class of interest under the main arrangements, established on or after 1st December 2009, may apply in writing to HMRC to be treated as a distributing fund in respect of a period of account if—

• (a) that period has the same accounting reference date as the overlap period or succeeding period of the existing fund, and

• (b) the existing fund is treated as a distributing fund in respect of the contemporaneous overlap period or succeeding period.

• (3B) This paragraph does not apply in respect of any period of account which ends after 31st May 2012.

• (4) The repeal by these Regulations of the enactments specified in Schedule 2 does not affect the continued operation of those provisions for the purposes of this paragraph.

4

• (1) This paragraph applies in the case of an existing fund which does not become a reporting fund immediately following its last account period as a distributing fund.

• (2) A participant in the fund may make an election to be treated for the purposes of TCGA 1992—

• (a) as disposing of an interest in the distributing fund at the end of that fund's last account period, and

• (b) as acquiring an interest in the non-reporting fund immediately following the disposal treated as made by paragraph (a).

• (3) The disposal referred to in paragraph (a) of sub-paragraph (2) is treated as made for a consideration equal to the net asset value of the participant's interest in the fund at the end of the final accounting period.

• (4) The acquisition referred to in paragraph (b) of sub-paragraph (2) is treated as made for the same amount as the disposal referred to in paragraph (a) of that sub-paragraph.

• (5) If the participant is chargeable to income tax, the election mentioned in sub-paragraph (2) must be made by being included in a return made for the tax year which includes the disposal date.

• (6) If the participant is chargeable to corporation tax, the election mentioned in sub-paragraph (2) must be made by being included in the participant's company tax return for the accounting period which includes the disposal date.

• (7) In this paragraph—

• “company tax return” has the same meaning as in Schedule 18 to the Finance Act 1998 ;

• “disposal date” means the final day of the distributing fund's final accounting period.

5

• (1) This paragraph applies in the case of an existing fund which—

• (a) immediately before 1st December 2009 was a non-qualifying fund, and

• (b) on 1st December 2009 becomes a reporting fund.

• (2) Regulation 48 applies as if, for references to the non-reporting fund, there were substituted references to the existing fund.

• (3) Chapter 5 of Part 17 of ICTA applies to determine the offshore income gain arising by virtue of the application of regulation 48.

6

• (1) This paragraph applies in the case of an existing fund which—

• (a) makes a successful application under paragraph 3 to continue to be treated as a distributing fund after 1st December 2009, and

• (b) becomes a reporting fund immediately following the end of the overlap period or the succeeding period.

• (2) For the purposes of regulations 17 and 99 the fund is treated as a reporting fund for the entirety of a continuous period—

• (a) beginning with the day the fund becomes a distributing fund, and

• (b) ending on the last day of the overlap period or the succeeding period (as the case may be).

• (3) If for any part of the period specified in sub-paragraph (2) the fund is not a distributing fund, the period is not continuous for the purposes of that sub-paragraph.

7

• (1) This paragraph applies in the case of an arrangement (“Fund X”) which, immediately before 1st December 2009, did not fall to be classified as an offshore fund, but which, on 1st December 2009, falls to be classified as an offshore fund.

• (2) Fund X may make an application, in accordance with Part 3, in relation to the period of account that is current on 1st December 2009.

• (3) The application must be received by HMRC on or before 31st May 2010.

SCHEDULE 2 — Repeals

Short title and chapter	Extent of repeal
Income and Corporation Taxes Act 1988 (c. 1)	Chapter 5 of Part 17. In section 834A, in Part 1 of the Table, the entry relating to section 761(1)(b)(i). Schedules 27 and 28.
Finance Act 1988 (c. 39)	In Schedule 13, paragraph 12.
Finance Act 1990 (c. 29)	In Schedule 14, paragraphs 10 and 11.
Taxation of Chargeable Gains Act 1992 (c. 12)	In section 108(1)(c), the words “, or have at any time been,”. In section 212, subsections (5) to (7). In Schedule 10, paragraph 14(43) to (49) and (63).
Finance Act 1995 (c. 4)	Section 134.
Finance Act 1996 (c. 8)	In Schedule 28, in paragraph 6, the words “and in paragraph 5(5) of Schedule 27 to that Act”.
Finance Act 2002 (c. 23)	In Schedule 9, paragraph 4(5) and (6).
Finance Act 2004 (c. 12)	In Schedule 26, paragraphs 1(1), 2(1), 4 to 9 and 13 to 16.
Income Tax (Trading and Other Income) Act 2005 (c. 5)	In Schedule 1, paragraphs 308, 309 and 350.
Finance (No. 2) Act 2005 (c. 22)	Section 23.
Finance Act 2006 (c. 25)	In Schedule 12, paragraph 47.
Income Tax Act 2007 (c. 3)	In section 1016(2), in Part 3 of the Table, the entry relating to section 761(1)(b)(i) of ICTA. In Schedule 1, paragraphs 179 to 181.
Finance Act 2008 (c. 9)	In Schedule 7, paragraphs 92 to 96. In Schedule 17, paragraph 30.

SCHEDULE 3 — Abbreviations and Defined Expressions

PART 1 — Abbreviations of Acts

TMA 1970	The Taxes Management Act 1970 (c. 9)
ICTA	The Income and Corporation Taxes Act 1988 (c. 1)
TCGA 1992	The Taxation of Chargeable Gains Act 1992 (c. 12)
FA 1996	The Finance Act 1996 (c. 8)
FISMA 2000	The Financial Services and Markets Act 2000 (c. 8)
ITTOIA 2005	The Income Tax (Trading and Other Income) Act 2005 (c. 5)
ITA 2007	The Income Tax Act 2007 (c. 3)
FA 2008	The Finance Act 2008 (c. 9)
CTA 2009	The Corporation Tax Act 2009 (c. 4)
CTA 2010	The Corporation Tax Act 2010 (c. 4)

PART 2 — Index of expressions defined or otherwise explained in these Regulations

Accounting income (in Part 3)	Regulation 72B(8)
Acquisition by way of initial purchase (in Part 4)	Regulation 72(4)
Applicant (in Part 3)	Regulation 51(3)
Application (in Part 3)	Regulation 51(3)
Basic gain	Chapter 5 of Part 2
Computation period (in Part 4)	Regulation 92C
Constant NAV fund	Regulation 118
Diversely owned fund	Regulation 73(2)
Eligible offshore fund (in Part 3)	Regulation 51(3)
Equalisation amount per unit of interest (in Part 4)	Regulation 92(3)(ba)
Equalisation amount (in Part 4)	Regulation 72(2)
Equivalence condition	Regulation 74
Existing fund application (in Part 3)	Regulation 51(3)
Financial trader (in Chapter 8 of Part 3)	Regulation 105
Fund distribution date	Regulation 94(4)
Fund operating equalisation arrangements (in Part 4)	Regulation 50A(a)
Fund operating full equalisation arrangements (in Part 4)	Regulation 50A(b)
Future fund application (in Part 3)	Regulation 51(3)
Genuine diversity of ownership condition	Regulations 75 and 76
Guaranteed return fund	Regulation 9
HMRC	Regulation 12
HMRC intervention	Regulation 108(6)
Interest (of a participant in an offshore fund)	Regulation 8
. . .	. . .
Main arrangements	Regulation 6
Manager (in Part 3)	Regulation 51(3)
Market value	Regulation 10
Material disposal	Regulation 15
Minor breach	Regulation 108(4)
Non-reporting fund	Regulation 4(2)
Offshore fund	Regulation 3
Offshore income gain	Chapter 5 of Part 2
OIG amount	Regulation 20(2)
Participant (in a fund)	Regulation 7
Period of account	Regulation 12
Proposed prospectus	Regulation 12
Prospectus	Regulation 12
Regulated market	Regulation 12
Relevant group of sections	Regulation 12
Reportable income	Chapter 5 of Part 3
Reported income	Regulation 92(2)
Reporting fund	Regulation 50
Reporting period	Regulation 91
Serious breach	Regulation 108(3)
Tax year	Regulation 12
TCGA disposal (in Chapter 6 of Part 2)	Regulation 44(2)
This group of regulations (in Chapter 8 of Part 3)	Regulation 102(2)
Transparent fund	Regulation 11
Transparent reporting fund	Regulation 89A(2)
Tribunal	Regulation 12
UCITS fund	Regulation 12
Umbrella arrangements	Regulation 5

Signed

Tony Cunningham — Dave Watts — Two of the Lords Commissioners of Her Majesty's Treasury — 2009-11-12

Explanatory note

(This note is not part of the Regulations)

Footnotes

[^f00001]: 2008 c. 9; section 42 was amended by paragraph 4 of Schedule 22 to the Finance Act 2009 (c. 10).

[^f00002]: Section 42A was inserted by paragraph 5 of Schedule 22 to the Finance Act 2009.

[^f00003]: Sections 40A to 40G of the Finance Act 2008 were inserted by paragraph 2 of Schedule 22 to the Finance Act 2009.

[^f00004]: Sections 40A to 40G were inserted by paragraph 2 of Schedule 22 to the Finance Act 2009 (c. 10), section 41 was amended by paragraph 3 of that Schedule, section 42 was amended by paragraph 4 of that Schedule and section 42A was inserted by paragraph 5 of that Schedule.

[^f00005]: Section 288(1ZA) was inserted by paragraph 101(3) of Schedule 2 to the Finance Act 2008 (c. 9).

[^f00006]: OJ No L 375, 20.12.85, p3.

[^f00007]: Section 830 was amended by paragraphs 51, 96, 156 and 162 of Schedule 7 to the Finance Act 2008.

[^f00008]: Section 688(1) was amended by paragraph 22 of Schedule 12 to the Finance Act 2008.

[^f00009]: Sections 809B to 809E were inserted by paragraph 1 of Schedule 7 to the Finance Act 2008 (c. 9).

[^f00010]: Chapter A1 of Part 14 of the Income Tax Act 2007 (c. 3), consisting of sections 809A to 809Z7 of that Act, was inserted by paragraph 1 of Schedule 7 to the Finance Act 2008 (c. 9).

[^f00011]: Section 87 was substituted by paragraph 108 of Schedule 7 to the Finance Act 2008.

[^f00012]: Section 12 was substituted by paragraph 60 of Schedule 7 to the Finance Act 2008; sections 87 to 87C were substituted for section 87 by paragraph 108 of Schedule 7 to the Finance Act 2008; section 88 was amended by section 130(2) of the Finance Act 1998 (c. 36), paragraph 35 of Schedule 12 to the Finance Act 2006 (c. 25), and by paragraph 6 of Schedule 2 and paragraph 109 of Schedule 7 to the Finance Act 2008; section 89 was amended by paragraph 110 of Schedule 7 to the Finance Act 2008; sections 90 and 90A were substituted for section 90 by paragraph 111 of Schedule 7 to the Finance Act 2008; section 96 was amended by section 127(3) of the Finance Act 1998, section 96 of, and paragraph 3 of Schedule 26 to, the Finance Act 2000 (c. 17); section 97 was amended by section 129(2) of the Finance Act 1998, paragraph 4 of Schedule 26 to the Finance Act 2000, paragraph 15 of Schedule 12 to the Finance Act 2006 and paragraph 302 of Schedule 1 to the Income Tax Act 2007 (c. 3); and section 98 was amended by paragraph 5 of Schedule 26 to the Finance Act 2000, paragraph 16 of Schedule 12 to the Finance Act 2006 and paragraph 303 of Schedule 1 to the Income Tax Act 2007. Schedule 4C was inserted by paragraph 1 of Schedule 26 to the Finance Act 2000. Paragraph 1 of Schedule 4C was substituted by paragraph 2 of Schedule 29 to the Finance Act 2003 (c. 14) and paragraph 7B of Schedule 4C, in its present form, was substituted by paragraph 137 of Schedule 7 to the Finance Act 2008.

[^f00013]: Sections 87 to 87C were substituted for section 87 by paragraph 108 of Schedule 7 to the Finance Act 2008 (c. 9).

[^f00014]: Section 726 was substituted by paragraph 165 of Schedule 7 to the Finance Act 2008; section 730 was substituted by paragraph 167 of Schedule 7 to the Finance Act 2008; and section 735 was substituted by paragraph 169 of Schedule 7 to the Finance Act 2008.

[^f00015]: Section 10 was amended by paragraph 2(2) of Schedule 27 to the Finance Act 2003 (c. 14).

[^f00016]: Section 10B was inserted by section 149(4) of the Finance Act 2003 and amended by paragraph 360 of Schedule 1 to the Corporation Tax Act 2009 (c. 4).

[^f00017]: Section 10A was inserted by section 127(1) of the Finance Act 1998 (c. 36) and amended by section 32 of the Finance (No. 2) Act 2005 (c. 22), section 74(4)(a) of the Finance Act 2006 (c. 25) and paragraph 59 of Schedule 7 to the Finance Act 2008.

[^f00018]: Section 13 was amended by section 174(1) to (9) of, and Part 5(30) of Schedule 41 to, the Finance Act 1996 (c. 8), section 122(4) of the Finance Act 1998, section 80 of the Finance Act 2001 (c. 9), Part 3(16) of Schedule 40 to the Finance Act 2002 (c. 23), paragraph 2(3) of Schedule 27 to the Finance Act 2003 (c. 14), paragraph 39 of Schedule 35 to the Finance Act 2004 (c. 12), paragraph 8 of Schedule 12 to the Finance Act 2006 and paragraphs 4 and 28 of Schedule 2 and paragraph 103 of Schedule 7 to the Finance Act 2008 (c. 9) and by S.I. 2009/56.

[^f00019]: In section 431(2), the definition of “insurance company” was substituted by S.I. 2001/3629 and amended by S.I. 2006/3270. As regards the expression “long-term insurance fund”, a definition of “long term business fund” was inserted by paragraph 1(2) of the Finance Act 1990 (c. 29) and amended by Part 5(26) of Schedule 41 to the Finance Act 1996. The definition was re-labelled as a definition of “long-term insurance fund” and further amended by S.I. 2001/3629.

[^f00020]: Section 40A was inserted by paragraph 2 of Schedule 22 to the Finance Act 2009 (c. 10).

[^f00021]: Section 759 is repealed by these Regulations (see regulation 13(2) and Schedule 2) subject to the saving contained in paragraph 3(4) of Schedule 1 (see regulation 13(3) of these Regulations).

[^f00022]: Section 506 was amended by section 55(2) of the Finance Act 2006 (c. 25) and paragraph 95 of Schedule 1 to the Income Tax Act 2007 (c. 3).

[^f00023]: Section 62 was amended by paragraph 5 of Schedule 21 to the Finance Act 1998 (c. 36), section 52 of the Finance Act 2002 (c. 23) and paragraph 29 of Schedule 2 to the Finance Act 2008 (c. 9).

[^f00024]: Section 135 was substituted by paragraph 1 of Schedule 9 to the Finance Act 2002.

[^f00025]: Section 136 was substituted by paragraph 2 of Schedule 9 to the Finance Act 2002.

[^f00026]: Section 56(2) was amended by section 93(5) of the Finance Act 1994 (c. 9).

[^f00027]: Section 165 was amended by paragraph 1(1) of Schedule 7 to the Finance Act 1993 (c. 34), section 140(4) of, and Part 3(31) of Schedule 27 to, the Finance Act 1998 (c. 36), section 90(1), (3) and (4) of the Finance Act 2000 (c. 17), paragraph 3 of Schedule 21 to the Finance Act 2004 (c. 12) and paragraph 33 of Schedule 2 to the Finance Act 2008 (c. 9). Section 260 was amended by section 72(6) of, and paragraph 4(2) of Schedule 13 to, the Finance Act 1995 (c. 4), Parts 3(31) and 4 of Schedule 27 to the Finance Act 1998, section 90(2) of the Finance Act 2000, paragraph 5 of Schedule 21 to the Finance Act 2004 and paragraph 32 of Schedule 20 to the Finance Act 2006 (c. 25).

[^f00028]: Section 16 was amended by section 113(1) of the Finance Act 1995, paragraph 7 of Schedule 4 to the Finance (No. 2) Act 2005 (c. 22), paragraph 298 of Schedule 1 to the Income Tax Act 2007 (c. 3) and paragraph 61 of Schedule 7 to the Finance Act 2008.

[^f00029]: Section 759 is repealed by these Regulations (see regulation 13(2) and Schedule 2) subject to the saving contained in paragraph 3(4) of Schedule 1 (see regulation 13(3) of these Regulations).

[^f00030]: Section 104 was amended by sections 123(1) to (4) and 125(3) of the Finance Act 1998, paragraph 17 of Schedule 12 to the Finance Act 2006 (c. 25) and paragraph 85 of Schedule 2 to the Finance Act 2008.

[^f00031]: 1998 c. 36.

[^f00032]: S.I. 2006/964, to which there are amendments not relevant to these Regulations.

[^f00033]: Section 40A was inserted by paragraph 2 of Schedule 22 to the Finance Act 2009 (c. 10).

[^f00034]: Section 839 was amended by paragraph 20 of Schedule 17 to the Finance Act 1995 (c. 4), paragraph 25 of Schedule 13 to the Finance Act 2006 (c. 25), paragraph 223 of Schedule 1 to the Income Tax Act 2007 (c. 3) and by S.I. 1988/745 and 2005/3229.

[^f00035]: Section 839 was amended by paragraph 20 of Schedule 17 to the Finance Act 1995 (c. 4), paragraph 25 of Schedule 13 to the Finance Act 2006 (c. 25), paragraph 223 of Schedule 1 to the Income Tax Act 2007 (c. 3) and by S.I. 1988/745 and 2005/3229.

[^f00036]: The text of the Kyoto Protocol is available at www.unfccc.int/kyoto_protocol/items/2830.php.

[^f00037]: Section 40A was inserted by paragraph 2 of Schedule 22 to the Finance Act 2009 (c. 10).

[^f00038]: Section 378A was inserted by section 39(3) of the Finance Act 2009.

[^f00039]: Section 397A was inserted by paragraph 4 of Schedule 12 to the Finance Act 2008 (c. 9) and amended by paragraph 2 of Schedule 19 to the Finance Act 2009.

[^f00040]: Section 688(1) was amended by paragraph 22 of Schedule 12 to the Finance Act 2008.

[^f00041]: Section 830 was amended by paragraphs 51, 96, 156 and 162 of Schedule 7 to the Finance Act 2008.

[^f00042]: 1998 c. 36.

[^f00043]: Section 506 was amended by section 55(2) of the Finance Act 2006 (c. 25) and paragraph 95 of Schedule 1 to the Income Tax Act 2007 (c. 3).

[^f00044]: Section 840ZA was inserted by paragraph 225 of Schedule 1 to the Income Tax Act 2007 (c. 3).

[^f00045]: 1984 c. 51. By virtue of section 100(1) and (2) of the Finance Act 1986 (c. 41), on and after 25th July 1986 the Capital Transfer Tax Act 1984 may be cited as the Inheritance Tax Act 1984, and any reference in that Act to capital transfer tax is to have effect as a reference to inheritance tax except where the reference relates to a liability to tax arising before 25th July 1986. Section 174(1)(a) was amended by paragraph 32 of Schedule 29 to the Income and Corporation Taxes Act 1988 (c. 1).

[^f00046]: Section 396(2) was substituted by paragraph 112(3) of Schedule 1 to the Corporation Tax Act 2009 (c. 4).

[^f00047]: Section 505(3) was substituted by section 55(1) of the Finance Act 2006 (c. 25).

[^f00048]: Section 587B was inserted by section 43(1) of the Finance Act 2000 (c. 17) and the definition of “offshore fund” in subsection (9) was substituted by paragraph 10 of Schedule 26 to the Finance Act 2004 (c. 12).

[^f00049]: Section 834A was inserted by paragraph 274 of Schedule 1 to the Corporation Tax Act 2009.

[^f00050]: Section 842(3A) was inserted by section 57(3) of the Finance Act 2007 (c. 11).

[^f00051]: In section 212, subsections (5) to (7) were amended by section 91(2)(b) and (3) of the Finance Act 1993 (c. 34), section 134(6) and (7) of the Finance Act 1995 (c. 4), Part 3(12) of Schedule 43 to the Finance Act 2003 (c. 14) and paragraph 11 of Schedule 26 to the Finance Act 2004 (c. 12).

[^f00052]: Schedule 7AD was inserted by Schedule 31 to the Finance Act 2002 (c. 23).

[^f00053]: Section 378A was inserted by section 39(3) of the Finance Act 2009 (c. 10). Section 126(3) of that Act amends the table of abbreviations in Part 1 of Schedule 4 to the Income Tax (Trading and Other Income) Act 2005 (c. 5) so that (among other matters) “the Finance Act 2008” may be abbreviated to “FA 2008”.

[^f00054]: Section 830(4)(aa) was inserted by paragraph 96 of Schedule 7 to the Finance Act 2008 (c. 9).

[^f00055]: Section 152(8) was amended by section 57(5) of the Finance Act 2007 (c. 11).

[^f00056]: Section 734(5) was inserted by paragraph 97 of Schedule 7 to the Finance Act 2008 (c. 9).

[^f00057]: Section 756A was inserted by paragraph 3 of Schedule 26 to the Finance Act 2004 (c. 12) and amended by section 57(2) of the Finance Act 2007 (c. 11). Section 756A is repealed by these Regulations (see regulation 13(2) and Schedule 2) subject to the saving contained in paragraph 3(4) of this Schedule (see regulation 13(3)).

[^f00058]: 1998 c. 36.

Editorial notes

[^c19951941]: 2008 c. 9; section 42 was amended by paragraph 4 of Schedule 22 to the Finance Act 2009 (c. 10).

[^c19951951]: Section 42A was inserted by paragraph 5 of Schedule 22 to the Finance Act 2009.

[^c19951961]: Sections 40A to 40G of the Finance Act 2008 were inserted by paragraph 2 of Schedule 22 to the Finance Act 2009.

[^c19951971]: Sections 40A to 40G were inserted by paragraph 2 of Schedule 22 to the Finance Act 2009 (c. 10), section 41 was amended by paragraph 3 of that Schedule, section 42 was amended by paragraph 4 of that Schedule and section 42A was inserted by paragraph 5 of that Schedule.

[^c19951981]: Section 288(1ZA) was inserted by paragraph 101(3) of Schedule 2 to the Finance Act 2008 (c. 9).

[^c19952001]: Section 830 was amended by paragraphs 51, 96, 156 and 162 of Schedule 7 to the Finance Act 2008.

[^c19952011]: Section 688(1) was amended by paragraph 22 of Schedule 12 to the Finance Act 2008.

[^c19952021]: Sections 809B to 809E were inserted by paragraph 1 of Schedule 7 to the Finance Act 2008 (c. 9).

[^c19952031]: Chapter A1 of Part 14 of the Income Tax Act 2007 (c. 3), consisting of sections 809A to 809Z7 of that Act, was inserted by paragraph 1 of Schedule 7 to the Finance Act 2008 (c. 9).

[^c19952041]: Section 87 was substituted by paragraph 108 of Schedule 7 to the Finance Act 2008.

[^c19952051]: Section 12 was substituted by paragraph 60 of Schedule 7 to the Finance Act 2008; sections 87 to 87C were substituted for section 87 by paragraph 108 of Schedule 7 to the Finance Act 2008; section 88 was amended by section 130(2) of the Finance Act 1998 (c. 36), paragraph 35 of Schedule 12 to the Finance Act 2006 (c. 25), and by paragraph 6 of Schedule 2 and paragraph 109 of Schedule 7 to the Finance Act 2008; section 89 was amended by paragraph 110 of Schedule 7 to the Finance Act 2008; sections 90 and 90A were substituted for section 90 by paragraph 111 of Schedule 7 to the Finance Act 2008; section 96 was amended by section 127(3) of the Finance Act 1998, section 96 of, and paragraph 3 of Schedule 26 to, the Finance Act 2000 (c. 17); section 97 was amended by section 129(2) of the Finance Act 1998, paragraph 4 of Schedule 26 to the Finance Act 2000, paragraph 15 of Schedule 12 to the Finance Act 2006 and paragraph 302 of Schedule 1 to the Income Tax Act 2007 (c. 3); and section 98 was amended by paragraph 5 of Schedule 26 to the Finance Act 2000, paragraph 16 of Schedule 12 to the Finance Act 2006 and paragraph 303 of Schedule 1 to the Income Tax Act 2007. Schedule 4C was inserted by paragraph 1 of Schedule 26 to the Finance Act 2000. Paragraph 1 of Schedule 4C was substituted by paragraph 2 of Schedule 29 to the Finance Act 2003 (c. 14) and paragraph 7B of Schedule 4C, in its present form, was substituted by paragraph 137 of Schedule 7 to the Finance Act 2008.

[^c19952061]: Sections 87 to 87C were substituted for section 87 by paragraph 108 of Schedule 7 to the Finance Act 2008 (c. 9).

[^c19952071]: Section 726 was substituted by paragraph 165 of Schedule 7 to the Finance Act 2008; section 730 was substituted by paragraph 167 of Schedule 7 to the Finance Act 2008; and section 735 was substituted by paragraph 169 of Schedule 7 to the Finance Act 2008.

[^c19952081]: Section 10 was amended by paragraph 2(2) of Schedule 27 to the Finance Act 2003 (c. 14).

[^c19952091]: Section 10B was inserted by section 149(4) of the Finance Act 2003 and amended by paragraph 360 of Schedule 1 to the Corporation Tax Act 2009 (c. 4).

[^c19952111]: Section 13 was amended by section 174(1) to (9) of, and Part 5(30) of Schedule 41 to, the Finance Act 1996 (c. 8), section 122(4) of the Finance Act 1998, section 80 of the Finance Act 2001 (c. 9), Part 3(16) of Schedule 40 to the Finance Act 2002 (c. 23), paragraph 2(3) of Schedule 27 to the Finance Act 2003 (c. 14), paragraph 39 of Schedule 35 to the Finance Act 2004 (c. 12), paragraph 8 of Schedule 12 to the Finance Act 2006 and paragraphs 4 and 28 of Schedule 2 and paragraph 103 of Schedule 7 to the Finance Act 2008 (c. 9) and by S.I. 2009/56.

[^c19952121]: In section 431(2), the definition of “insurance company” was substituted by S.I. 2001/3629 and amended by S.I. 2006/3270. As regards the expression “long-term insurance fund”, a definition of “long term business fund” was inserted by paragraph 1(2) of the Finance Act 1990 (c. 29) and amended by Part 5(26) of Schedule 41 to the Finance Act 1996. The definition was re-labelled as a definition of “long-term insurance fund” and further amended by S.I. 2001/3629.

[^c19952131]: Section 40A was inserted by paragraph 2 of Schedule 22 to the Finance Act 2009 (c. 10).

[^c19952141]: Section 759 is repealed by these Regulations (see regulation 13(2) and Schedule 2) subject to the saving contained in paragraph 3(4) of Schedule 1 (see regulation 13(3) of these Regulations).

[^c19952151]: Section 506 was amended by section 55(2) of the Finance Act 2006 (c. 25) and paragraph 95 of Schedule 1 to the Income Tax Act 2007 (c. 3).

[^c19952161]: Section 62 was amended by paragraph 5 of Schedule 21 to the Finance Act 1998 (c. 36), section 52 of the Finance Act 2002 (c. 23) and paragraph 29 of Schedule 2 to the Finance Act 2008 (c. 9).

[^c19952191]: Section 56(2) was amended by section 93(5) of the Finance Act 1994 (c. 9).