The Collective Investment Schemes (Tax Transparent Funds, Exchanges, Mergers and Schemes of Reconstruction) Regulations 2013

Amendments in relation to exchanges, mergers and schemes of reconstruction

8.  In section 99A (authorised unit trusts: treatment of umbrella schemes)(1)—

(a) in subsection (1), for “an authorised unit trust” substitute “a relevant collective investment scheme”,

(b) for subsection (2) substitute—

“(2) For the purposes of this Act (except subsection (1) and section 103C)—

(a) each of the parts of an umbrella scheme shall itself be regarded as a collective investment scheme of the same form as the umbrella scheme as a whole, and

(b) the umbrella scheme as a whole shall not be regarded as a collective investment scheme of that form or as any other form of collective investment scheme,

and the participants in the umbrella scheme are to be treated accordingly.

(2A) Subsection (2)—

(a) does not prevent gains or losses accruing to an umbrella scheme which is a unit trust scheme (other than an authorised unit trust) being regarded as gains or losses accruing to the umbrella scheme as a whole, and

(b) does not apply for the purposes of section 100(2).”,

(c) omit subsection (3),

(d) in subsection (4)—

(i) for “subsections (2) or (3)” substitute “subsection (2)”,

(ii) in paragraph (b) for “an authorised unit trust” substitute “a unit trust scheme”,

(e) at the end insert—

“(5) For the purposes of subsection (1), “arrangements” includes arrangements provided in a company’s instrument of incorporation.

(6) In this section, “relevant collective investment scheme” means a collective investment scheme which is—

(a) an authorised contractual scheme which is a co-ownership scheme,

(b) a unit trust scheme, or

(c) an offshore fund.”, and

(f) accordingly the heading becomes “Treatment of umbrella schemes”.

(1)

Section 99A was inserted by section 118(3) of the Finance Act 2004 and amended by Part 3 of Schedule 42 of that Act and section 36(2) of the Finance Act 2012 (c. 14).