SCHEDULE 1Transitional Provisions and Savings
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 M1;
“disposal date” means the final day of the distributing fund's final accounting period.