PART 2THE TREATMENT OF PARTICIPANTS IN NON-REPORTING FUNDS

CHAPTER 4DISPOSALS OF INTERESTS IN NON-REPORTING FUNDS

Further provisions

F1Exchanges and schemes of reconstruction36A

1

The following sections of TCGA 1992 do not apply to the extent that an interest in a non-reporting fund is exchanged or treated as exchanged for an asset which is not an interest in a non-reporting fund.

2

The sections are—

a

section 103G (exchange of units for those in another collective investment scheme),

b

section 103H (scheme of reconstruction involving issue of units),

c

section 135 (exchange of securities for those in another company), and

d

section 136 (scheme of reconstruction involving issue of securities).

3

In a case where one of those sections would apply apart from paragraph (1), the exchange or deemed exchange shall for the purposes of this Part constitute a disposal of interests in the non-reporting fund for a consideration equal to their market value at the time of the exchange or deemed exchange.