Unit trust schemesU.K.
468 Authorised unit trusts.U.K.
(1)M1In respect of income arising to the trustees of an authorised unit trust, and for the purposes of the provisions relating to relief for capital expenditure, the Tax Acts shall have effect as if—
(a)the trustees were a company resident in the United Kingdom; and
(b)the rights of the unit holders were shares in the company;
[F1but paragraph (b) above is without prejudice to the making of distributions which are interest distributions (within the meaning of section 468L) to unit holders]
[F2(1A)In relation to any authorised unit trust the rate of corporation tax for the financial year 1996 and subsequent financial years shall be deemed to be the rate at which income tax at the lower rate is charged for the year of assessment which begins on 6th April in the financial year concerned [F3and sections 13 [F4, 13AA and 13AB] shall not apply].]
(2)F5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3)References in the Corporation Tax Acts to a body corporate shall be construed in accordance with [F6subsection (1) above], and section [F7234A] shall apply with any necessary modifications.
(4)F8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5)F9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(6)[F10 Subject to subsections (7) to (9) below] in this section—
“authorised unit trust” means, as respects an accounting period, a unit trust scheme in the case of which an order under section [F11 243 of the Financial Services and Markets Act 2000] is in force during the whole or part of that accounting period;
F12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
“unit holder” means a person entitled to a share of the investments subject to the trusts of a unit trust scheme; and
“unit trust scheme” has the same meaning as in section 469.
[F13(7)Each of the parts of an umbrella scheme shall be regarded for the purposes of this Chapter as an authorised unit trust and the scheme as a whole shall not be so regarded.
(8)In this section, “umbrella scheme” means a unit trust scheme—
(a)which provides arrangements for separate pooling of the contributions of the participants and the profits or income out of which payments are to be made to them;
(b)under which the participants are entitled to exchange rights in one pool for rights in another; and
(c)in the case of which an order under section [F11243 of the Financial Services and Markets Act 2000] is in force;
and any reference to a part of an umbrella scheme is a reference to such of the arrangements as relate to a separate pool.
(9)In relation to a part of an umbrella scheme, any reference—
(a)to investments subject to the trusts of an authorised unit trust, shall have effect as a reference to such of the investments as under the arrangements form part of the separate pool to which the part of the umbrella scheme relates; and
(b)to a unit holder, shall have effect as a reference to a person for the time being having rights in that separate pool.]
Textual Amendments
F1Words in s. 468(1) inserted (with effect in accordance with Sch. 14 para. 7 of the amending Act) by Finance Act 1994 (c. 9), Sch. 14 para. 3(2)
F2S. 468(1A) inserted (with effect in accordance with Sch. 6 paras. 10(2), 28 of the amending Act) by Finance Act 1996 (c. 8), Sch. 6 para. 10(1)
F3Words in s. 468(1A) inserted (with effect in accordance with s. 28(6) of the amending Act) by Finance Act 1999 (c. 16), s. 28(3)
F4Words in s. 468(1A) substituted (22.7.2004) by Finance Act 2004 (c. 12), s. 28(3)
F5S. 468(2) repealed (with effect in accordance with Sch. 14 para. 7 of the repealing Act) by Finance Act 1994 (c. 9), Sch. 14 para. 3(3), Sch. 25 Pt. 5(13), Note
F6Words in s. 468(3) substituted (with effect in accordance with Sch. 14 para. 7 of the amending Act) by Finance Act 1994 (c. 9), Sch. 14 para. 3(4)
F7Words in s. 468(3) substituted (16.7.1992) by Finance (No. 2) Act 1992 (c. 48), s. 32(3)(4)
F8S. 468(4) repealed (28.9.2004 with effect in accordance with art. 1(2) of the repealing S.I.) by The Finance Act 2004, Sections 38 to 40 and 45 and Schedule 6 (Consequential Amendment of Enactments) Order 2004 (S.I. 2004/2310), art. 2, Sch. para. 20
F9S. 468(5) repealed by Finance Act 1990 (c. 29), s. 52, Sch. 19 Pt. 4, Note 7
F10Words in s. 468(6) inserted (with effect in accordance with s. 113(4)-(11) of the amending Act) by Finance Act 1994 (c. 9), s. 113(1)
F11Words in s. 468(6)(8) substituted (1.12.2001) by Financial Services and Markets Act 2000 (c. 8), s. 431(2), Sch. 20 para. 4(3); S.I. 2001/3538, art. 2(1)
F12S. 468(6): definition of "distribution period" repealed (with effect in accordance with Sch. 14 para. 7 of the repealing Act) by Finance Act 1994 (c. 9), Sch. 14 para. 3(5), Sch. 26 Pt. 5(13), Note
F13S. 468(7)-(9) added (with effect in accordance with s. 113(4)-(11) of the amending Act) by Finance Act 1994 (c. 9), s. 113(2)
Modifications etc. (not altering text)
C1S. 468 modified (28.4.1997) by The Open-ended Investment Companies (Tax) Regulations 1997 (S.I 1997/1154), regs. 1, 9, 10 (as amended (1.12.2001) by The Financial Services and Markets Act 2000 (Consequential Amendments) (Taxes) Order 2001 (S.I. 2001/3629), art. 166)
C2 Definition employed for the purposes of s.46(7)—insurance companies: annual deemed disposal of holdings of unit trusts etc.
Marginal Citations
M1Source—1970 ss.354, 358; 1980 s.60; 1987 s.38, 40(1); 1987 (No.2) s.40(1)
[F14468AA Authorised unit trusts: futures and options.U.K.
F15. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]
Textual Amendments
F14S. 468AA inserted by Finance Act 1990 (c. 29), s. 81(1)(5)
F15S. 468AA repealed (with effect in accordance with s. 83(3) of the repealing Act) by Finance Act 2002 (c. 23), Sch. 27 para. 6, Sch. 40 Pt. 3(13), Note (with Sch. 28)
[F16468A Certified unit trusts.U.K.
F17. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]
Textual Amendments
F16Ss. 468A-468C inserted by Finance Act 1989 (c. 26), s. 78
F17Ss. 468A-468D repealed by Finance Act 1990 (c. 29), s. 52, Sch. 19 Pt. 4, Note 7
F18468B Certified unit trusts: corporation tax.U.K.
F19. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F18Ss. 468A-468C inserted by Finance Act 1989 (c. 26), s. 78
F19Ss. 468A-468D repealed by Finance Act 1990 (c. 29), s. 52, Sch. 19 Pt. 4, Note 7
F20468C Certified unit trusts: distributions.U.K.
F21. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F20Ss. 468A-468C inserted by Finance Act 1989 (c. 26), s. 78
F21Ss. 468A-468D repealed by Finance Act 1990 (c. 29), s. 52, Sch. 19 Pt. 4, Note 7
[F22468D Funds of funds: distributions.U.K.
F23. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]
Textual Amendments
F22S. 468D inserted by Finance Act 1989 (c. 26), s. 79
F23Ss. 468A-468D repealed by Finance Act 1990 (c. 29), s. 52, Sch. 19 Pt. 4, Note 7
[F24468E Authorised unit trusts: corporation tax.U.K.
F25. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]
Textual Amendments
F24Ss. 468E-468G inserted by Finance Act 1990 (c. 29), s. 51
F25S. 468E repealed (with effect in accordance with Sch. 6 paras. 10(3), 28 of the repealing Act) by Finance Act 1996 (c. 8), Sch. 41 Pt. 5(1), Note 1
[F26468EE Corporation tax: cases where lower rate applies.U.K.
F27. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]
Textual Amendments
F26S. 468EE inserted (3.5.1994) by Finance Act 1994 (c. 9), s. 111(2)
F27S. 468EE repealed (with effect in accordance with Sch. 6 paras. 10(3), 28 of the repealing Act) by Finance Act 1996 (c. 8), Sch. 41 Pt. 5(1), Note 1
F28468F Authorised unit trusts: distributions.U.K.
F29. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F28Ss. 468E-468G inserted by Finance Act 1990 (c. 29), s. 51
F29S. 468F repealed (with effect in accordance with Sch. 14 para. 7 of the repealing Act) by Finance Act 1994 (c. 9), Sch. 14 para. 4, Sch. 26 Pt. 5(13), Note
F30468G Dividends paid to investment trusts.U.K.
F31. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F30Ss. 468E-468G inserted by Finance Act 1990 (c. 29), s. 51
F31S. 468G repealed (with effect in accordance with Sch. 14 para. 7 of the repealing Act) by Finance Act 1994 (c. 9), Sch. 14 para. 4, Sch. 26 Pt. 5(13), Note