PART 2THE TREATMENT OF PARTICIPANTS IN NON-REPORTING FUNDS

CHAPTER 3EXCEPTIONS ETC. FROM THE CHARGE TO TAX

Exceptions from the charge25

1

No liability to tax arises under regulation 17 if any of conditions A to E is met.

2

Condition A is that the participant is required to treat the interest in the fund as a loan relationship under Chapter 3 of Part 6 of CTA 2009.

3

Condition B is that the participant is required to treat the interest in the fund as a derivative contract to which the provisions of Part 7 of CTA 2009 apply.

4

Condition C is that the asset is an intangible fixed asset to which the provisions of Part 8 of CTA 2009 apply.

5

Condition D is that the asset consists of excluded indexed securities as defined in section 433 of ITTOIA 2005.

6

Condition E is that the asset is a right arising under a policy of insurance.