The Unauthorised Unit Trusts (Tax) Regulations 2013

No tax charge for disposal of interests in offshore non-reporting funds: qualifying index U.K.

23.—(1) No tax is charged on the trustees of an exempt unauthorised unit trust under regulation 17 of the Offshore Funds Regulations on the disposal of an interest in a non-reporting fund if—

(a) in accordance with the trust's investment strategy contained in its prospectus, the aim of the trust throughout the period during which the trustees held the interest has been to replicate the performance of a qualifying index,

(b) the main purpose of the investment in the non-reporting fund throughout that period is to represent the composition of the qualifying index, and

(c) the capital and income returns of the trust throughout that period replicated as closely as practicable the returns of the investment comprised in the qualifying index.

(2) For the purposes of this regulation an index is a “qualifying index” if—

(a) it is based solely on the value of securities listed on a recognised stock exchange or admitted to trading on a regulated market,

(b) an authority (whether in the United Kingdom or elsewhere) recognises the index on the basis that—

(i) its composition is sufficiently diverse,

(ii) it represents an adequate benchmark for the market to which it refers, and

(iii) it is published in such a way that it is widely available, and

(c) it is calculated and published by a body which is managed independently from the management of the exempt unauthorised unit trust.

[F1 (3) In this regulation “regulated market” means—

(a) a UK regulated market within the meaning given by Article 2.1(13A) of Regulation (EU) No 600/2014 of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments,

(b) an EU regulated market within the meaning given by Article 2.1(13B) of that Regulation, and

[F2 (c) a Gibraltar regulated market within the meaning given by Article 26(11)(b)(i) of that Regulation.]]

Textual Amendments

F1 Reg. 23(3) substituted (31.12.2020) by The Taxes (Amendments) (EU Exit) Regulations 2019 (S.I. 2019/689), regs. 1, 34(2) (with regs. 39-41); 2020 c. 1, Sch. 5 para. 1(1)

F2 Reg. 23(3)(c) substituted (31.12.2020) by The Taxes (Amendments) (EU Exit) (No. 2) Regulations 2019 (S.I. 2019/818), regs. 1(3), 13(2); 2020 c. 1, Sch. 5 para. 1(1)