[F1Qualifying conditions and information provided to HMRCU.K.
Textual Amendments
F1Sch. 5AAA inserted (with effect in accordance with Sch. 1 paras. 120, 123 of the amending Act) by Finance Act 2019 (c. 1), Sch. 1 para. 21
13(1)For the purposes of paragraph 12(2), a collective investment vehicle meets the qualifying conditions in this paragraph at any time if, at that time—U.K.
(a)it is a collective investment scheme and it meets the genuine diversity of ownership condition,
(b)it is a company (otherwise than as a result of paragraph 4) and it meets the recognised stock exchange condition and the non-close condition, or
(c)it is a collective investment vehicle (of any kind) and it meets the UK tax condition and the non-close condition.
(2)For the purposes of paragraph 12(3), a company which is not a collective investment vehicle meets the qualifying conditions in this paragraph at any time if, at that time, either—
(a)the company meets the UK tax condition and the non-close condition, or
(b)the collective investment scheme which wholly (or almost wholly) owns the company meets the genuine diversity of ownership condition.
(3)For the purposes of this paragraph a collective investment scheme meets the genuine diversity of ownership condition at any time if, at that time—
(a)it meets conditions A to C of regulation 75 of the Offshore Funds (Tax) Regulations 2009, or
(b)it meets the condition in regulation 75(5) of those Regulations,
and those Regulations apply for the purposes of this sub-paragraph as if any collective investment scheme which is not an offshore fund were regarded as an offshore fund.
(4)For the purposes of this paragraph a company meets the recognised stock exchange condition at any time if, at that time—
(a)it has ordinary share capital, and
(b)the shares forming part of its ordinary share capital are regularly traded on a recognised stock exchange.
(5)For the purposes of this paragraph a company meets the non-close condition at any time if, at that time, it—
(a)is not a close company, or
(b)is a close company but only because it has a qualifying investor as a direct or indirect participator.
(6)Paragraph 46 (meaning of “close company”, “qualifying investor” and “direct or indirect participator”) applies for the purposes of sub-paragraph (5).
(7)For the purposes of this paragraph a company meets the UK tax condition at any time if, on the assumption that all of the shares in it were disposed of for their market value at that time, the person making the election reasonably considers at that time that, as a result solely of double taxation arrangements, no more than 25% of the total proceeds would fall to be left out of account for the purposes of this Act.
14(1)An election under paragraph 12 has effect only if it is accompanied by information of such description as may be specified by an officer of Revenue and Customs about disposals made by participants in the relevant fund at any time in—U.K.
(a)the period of two years ending with the day before the day on which the election is made, or
(b)if shorter, the period beginning with the constitution of the relevant fund and ending with the day before the day on which the election is made.
(2)Information is not required by sub-paragraph (1) to accompany the election so far as—
(a)it has already been provided to an officer of Revenue and Customs in a form and manner, and at times, specified by an officer of Revenue and Customs, and
(b)the election sets out those occasions on which the information has been so provided.
15(1)An election under paragraph 12 has effect subject to such conditions as to the provision of information or documents to an officer of Revenue and Customs as may be specified by an officer of Revenue and Customs.U.K.
(2)The information or documents must be provided to an officer of Revenue and Customs in respect of every period of account of the relevant fund which ends at a time when the election has effect.
(3)The information or documents must be provided to an officer of Revenue and Customs within the period of 12 months from the end of the period of account.
(4)The conditions as to the provision of information or documents may include—
(a)conditions relating to the participants in the relevant fund, and
(b)conditions requiring information or documents in respect of the operation of any provision of this Schedule (or any provision of this Act relevant to this Schedule).
(5)In the case of an election under paragraph 12—
(a)a designated HMRC officer may revoke the election if, in the officer's opinion, there has been, without reasonable excuse, a breach of any provision made by or under this paragraph, but
(b)an officer of Revenue and Customs (whether or not designated) may waive a breach of any provision made by or under this paragraph if, in the officer's opinion, there is no reasonable excuse for the breach but, having regard to all the circumstances, the breach is nonetheless insignificant.
(6)The circumstances to which the officer may have regard in determining whether a breach is insignificant include the number and seriousness of previous breaches.
(7)In this paragraph “period of account”, in relation to the relevant fund, means any period for which accounts of the relevant fund are drawn up.
(8)If the period of account would otherwise be longer than 12 months, the period of account is to be treated for the purposes of this paragraph as split into more than one period of account, and—
(a)the first deemed period of account is to be 12 months long, and
(b)any subsequent deemed period of account is to start when the previous deemed period of account ends and is to end 12 months later or, if earlier, when the actual period of account ends.]