|
| |
|
the financial year concerned (and sections 13, 13AA and 13AB shall not |
| |
| |
(2) | In this section “open-ended investment company” means a company |
| |
incorporated in the United Kingdom to which section 236 of the |
| |
Financial Services and Markets Act 2000 (c. 8) applies. |
| 5 |
(3) | Each of the parts of an umbrella company shall be regarded for the |
| |
purposes of this section as an open-ended investment company and the |
| |
umbrella company as a whole shall not be so regarded (and shall not, |
| |
unless an enactment expressly provides otherwise, be regarded as a |
| |
company for any other purpose of the Tax Acts). |
| 10 |
(4) | In subsection (3) “umbrella company” means an open-ended |
| |
| |
(a) | in respect of which the instrument of incorporation provides |
| |
arrangements for separate pooling of the contributions of the |
| |
shareholders and the profits or income out of which payments |
| 15 |
are to be made to them, and |
| |
(b) | the shareholders of which are entitled to exchange rights in one |
| |
pool for rights in another, |
| |
and a reference to part of an umbrella company is a reference to a |
| |
| 20 |
17 | Authorised unit trusts and open-ended investment companies |
| |
(1) | The following provisions shall cease to have effect— |
| |
(a) | sections 468H to 468Q of ICTA (authorised unit trusts), |
| |
(b) | paragraphs 2A and 2B of Schedule 10 to FA 1996 (authorised unit trusts |
| |
and open-ended investment companies: loan relationships), |
| 25 |
(c) | paragraphs 32 and 33 of Schedule 26 to FA 2002 (collective investment |
| |
schemes: derivative contracts), |
| |
(d) | section 373(4) and (6) of ITTOIA 2005 (open-ended investment |
| |
company: interest distributions), and |
| |
(e) | section 376(4) and (6) of ITTOIA 2005 (authorised unit trust: interest |
| 30 |
| |
(2) | In this Chapter “authorised investment funds” means— |
| |
(a) | authorised unit trust schemes, and |
| |
(b) | open-ended investment companies. |
| |
(3) | The Treasury may, by regulations— |
| 35 |
(a) | make provision about the treatment of authorised investment funds for |
| |
the purposes of an enactment relating to taxation; |
| |
(b) | provide for the modification of an enactment relating to taxation in its |
| |
application in relation to— |
| |
(i) | authorised investment funds, |
| 40 |
(ii) | shareholders or unit holders in authorised investment funds, or |
| |
(iii) | transactions involving authorised investment funds; |
| |
(c) | impose requirements on persons responsible for the management of an |
| |
authorised investment fund in relation to the provision of information, |
| |
the form of accounts, the keeping of records or other administrative |
| 45 |
| |
|
| |
|
| |
|
(4) | For the purposes of this Chapter— |
| |
(a) | “unit trust scheme” has the meaning given by section 237 of the |
| |
Financial Services and Markets Act 2000 (c. 8), |
| |
(b) | a unit trust scheme is authorised in relation to an accounting period if |
| |
an order under section 243 of the Financial Services and Markets Act |
| 5 |
2000 is in force in relation to that scheme during the whole or part of |
| |
| |
(c) | “unit holder” means a person entitled to a share of the investments |
| |
subject to the trusts of a unit trust scheme, |
| |
(d) | a reference to a shareholder or unit holder includes a person |
| 10 |
beneficially entitled to shares or units (and a reference to owning units |
| |
or shares shall be construed accordingly), |
| |
(e) | “open-ended investment company” means a company incorporated in |
| |
the United Kingdom to which section 236 of the Financial Services and |
| |
Markets Act 2000 applies, |
| 15 |
(f) | “associate” has the meaning given by section 417 ICTA, |
| |
(g) | “net asset value” means the value of the assets of the authorised |
| |
investment fund, after the deduction of specified liabilities, |
| |
(h) | a reference to a distribution includes investing an amount on behalf of |
| |
a unit holder or shareholder in respect of his accumulation units or |
| 20 |
| |
(i) | “distribution accounts” means accounts showing— |
| |
(i) | the total amount available for distribution to unit holders or |
| |
| |
(ii) | how that amount is computed, |
| 25 |
(j) | the “distribution date” for a distribution period in relation to an |
| |
authorised investment fund means— |
| |
(i) | the date specified by or in accordance with the terms of the trust |
| |
or the instrument of incorporation of the company for any |
| |
distribution for that distribution period, or |
| 30 |
(ii) | if no date is specified, the last day of that distribution period, |
| |
(k) | “distribution period” in relation to an authorised investment fund |
| |
means a period by reference to which the total amount available for |
| |
distribution to unit holders or shareholders is ascertained, |
| |
(l) | “umbrella company” has the meaning given by section 468A of ICTA, |
| 35 |
(m) | “umbrella scheme” has the meaning given by section 468 of ICTA, and |
| |
(n) | section 839 of ICTA (connected persons) applies. |
| |
18 | Section 17(3): specific powers |
| |
(1) | Regulations under section 17(3)(a) or (b) may make provision about |
| |
distributions which may, in particular— |
| 40 |
(a) | require an authorised investment fund to comply with prescribed rules |
| |
for determining (whether by reference to a formula or otherwise) what |
| |
proportion of an amount shown in distribution accounts as available |
| |
for distribution is to be distributed by way of dividends and what |
| |
proportion is to be distributed by way of yearly interest; |
| 45 |
(b) | permit persons responsible for the management of an authorised |
| |
investment fund to elect to distribute entirely by way of dividends; |
| |
(c) | require distribution accounts to show the amount available for |
| |
| |
|
| |
|
| |
|
| |
(ii) | by way of yearly interest; |
| |
(d) | allow a distribution of yearly interest for a distribution period to be |
| |
deducted, in the prescribed manner, in computing the profits of the |
| |
authorised investment fund for the accounting period in which the last |
| 5 |
day of that distribution period falls; |
| |
(e) | make provision for determining the distribution date in relation to a |
| |
distribution period of an authorised investment fund; |
| |
(f) | permit distributions to be made, in prescribed circumstances, to or for |
| |
the benefit of a person not ordinarily resident in the United Kingdom |
| 10 |
| |
(g) | permit distributions to be made without deducting tax, in prescribed |
| |
circumstances, to a person ordinarily resident in the United Kingdom |
| |
who is unlikely to be liable to pay an amount by way of income tax for |
| |
the year of assessment in which the distribution is made; |
| 15 |
(h) | include provision, in respect of a unit holder or shareholder who is |
| |
within the charge to corporation tax, about— |
| |
(i) | the liability to corporation tax resulting from receipt of a |
| |
| |
(ii) | the method of computing that liability. |
| 20 |
(2) | Regulations under section 17(3)(a) or (b) may, in particular— |
| |
(a) | make special provision for loan relationships held by an authorised |
| |
| |
(b) | make special provision for derivative contracts held by an authorised |
| |
| 25 |
(c) | modify the meaning of “relevant holding” for the purposes of— |
| |
(i) | paragraph 4 of Schedule 10 to FA 1996 (loan relationships), and |
| |
(ii) | paragraph 36 of Schedule 26 to FA 2002 (derivative contracts); |
| |
(d) | make special provision in relation to the treatment of umbrella |
| |
companies and umbrella schemes (or shareholders or unit holders in |
| 30 |
umbrella companies or umbrella schemes); |
| |
(e) | prohibit action which favours a class of unit holders or shareholders. |
| |
(3) | Regulations under section 17(3)(a) or (b) may, in particular— |
| |
(a) | make special provision in relation to a person who, alone or together |
| |
with associates or connected persons, owns (otherwise than as a |
| 35 |
nominee) units or shares, in a fund designated by the Financial Services |
| |
Authority as a Qualified Investor Scheme, which represent 10% or |
| |
more (or such other percentage as the regulations may specify) of the |
| |
net asset value of the fund; |
| |
(b) | include exceptions from provision made by virtue of paragraph (a) |
| 40 |
above including, in particular, an exception relating to units or shares |
| |
| |
(i) | by a charity (within the meaning of section 506(1) of ICTA), |
| |
(ii) | by a registered pension scheme (within the meaning of section |
| |
| 45 |
(iii) | by an insurance company (within the meaning of section 431(2) |
| |
of ICTA) as assets of its long-term insurance fund (within the |
| |
meaning of that section), or |
| |
(iv) | by such other persons, in such circumstances, as the regulations |
| |
| 50 |
|
| |
|
| |
|
(4) | Regulations under section 17(3)(c) may, in particular, require persons |
| |
responsible for the management of an authorised investment fund to supply |
| |
information to, and make available books, documents and other records for |
| |
inspection by, the Commissioners for Her Majesty’s Revenue and Customs. |
| |
(5) | Regulations under section 17(3) may in particular— |
| 5 |
(a) | amend a reference in an enactment to a provision repealed by section |
| |
| |
(b) | make different provision for different circumstances; |
| |
(c) | make incidental, consequential, supplemental or transitional provision. |
| |
19 | Section 17: commencement and procedure |
| 10 |
(1) | Section 17(1) shall come into force on such day as the Treasury may appoint by |
| |
| |
(2) | An order under subsection (1) may— |
| |
(a) | commence only a specified repeal; |
| |
(b) | commence different repeals at different times; |
| 15 |
(c) | commence a repeal at different times for different purposes; |
| |
| |
(3) | Regulations under section 17(3) shall be subject to annulment by a resolution |
| |
| |
(4) | But the first set of regulations under section 17(3) may not be made unless a |
| 20 |
draft has been laid before and approved by resolution of the House of |
| |
| |
20 | Unauthorised unit trusts: chargeable gains |
| |
(1) | Section 100 of TCGA 1992 (exemption for authorised unit trusts, &c.) shall be |
| |
| 25 |
(2) | After subsection (2) insert— |
| |
“(2A) | In determining whether subsection (2) applies no account shall be taken |
| |
of units in a scheme which— |
| |
(a) | have been disposed of by a unit holder, and |
| |
(b) | are held by the managers of the scheme (in that capacity) |
| 30 |
| |
(2B) | In determining whether subsection (2) applies no account shall be taken |
| |
of the possibility of a charge to corporation tax on income in respect of |
| |
a gain accruing on a disposal by— |
| |
(a) | an insurance company (within the meaning given by section |
| 35 |
431 of the Taxes Act), or |
| |
(b) | a friendly society (being an incorporated friendly society or |
| |
registered friendly society within the meaning given by section |
| |
466(2) of the Taxes Act).” |
| |
(3) | This section shall have effect for the year 2005-06 and subsequent years of |
| 40 |
| |
|
| |
|