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.U.K.
(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.
Marginal Citations