468 Authorised unit trusts.U.K.
(1)In 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;
[but paragraph (b) above is without prejudice to the making of distributions which are interest distributions (within the meaning of section 468L) to unit holders]
[(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 [and sections 13 and 13AA shall not apply].]
(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3)References in the Corporation Tax Acts to a body corporate shall be construed in accordance with [subsection (1) above], and section [234A] shall apply with any necessary modifications.
(4)Section 75 shall apply in relation to an authorised unit trust whether or not it is an investment company within the meaning of section 130; and sums periodically appropriated for managers’ remuneration shall be treated for the purposes of section 75 as sums disbursed as expenses of management.
(5)Subsection (1) above shall not apply in relation to an authorised unit trust under the terms of which the funds of the trust cannot be invested in such a way that income can arise to the trustees which will be chargeable to tax in the hands of the trustees otherwise than—
(a)under Schedule C as profits arising from United Kingdom public revenue dividends, or
(b)under Case III of Schedule D;
and in this subsection “United Kingdom public revenue dividends” means public revenue dividends payable in the United Kingdom (whether they are also payable outside the United Kingdom or not) out of the public revenue of the United Kingdom.
(6)[ 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 78 of the Financial Services Act 1986 is in force during the whole or part of that accounting period;
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“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.
[(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 78 of the Financial Services Act 1986 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
Modifications etc. (not altering text)
Marginal Citations