SCHEDULES

SCHEDULE 1U.K. Investments and Investment Business

Modifications etc. (not altering text)

Part VU.K. Interpretation

[F134(1)For the purposes of this Schedule arrangements are not a collective investment scheme if—

(a)the property to which the arrangements relate (other than cash awaiting investment) consists of shares;

(b)they constitute a complying fund;

(c)each participant is the owner of a part of the property to which the arrangements relate and, to the extent that his part of that property–

(i)comprises relevant shares of a class which are admitted to the Official List of any member State or to dealings on a recognised investment exchange, he is entitled to withdraw it at any time after the end of the period of five years beginning with the date on which the shares in question were issued;

(ii)comprises relevant shares which do not fall within sub-paragraph (i) above, he is entitled to withdraw it at any time after the end of the period of two years beginning with the date upon which the period referred to in sub-paragraph (i) above expired;

(iii)comprises any other shares, he is entitled to withdraw it at any time after the end of the period of six months beginning with the date upon which the shares in question ceased to be relevant shares; and

(iv)comprises cash which the operator has not agreed (conditionally or unconditionally) to apply in subscribing for shares, he is entitled to withdraw it at any time; and

(d)the arrangements would meet the conditions described in section 75(5)(c) of this Act were it not for the fact that the operator is entitled to exercise all or any of the rights conferred by shares included in the property to which the arrangements relate.

(2)For the purposes of this paragraph–

(a)“shares” means investments falling within paragraph 1 of this Schedule;

(b)shares shall be regarded as being relevant shares if and so long as they are shares in respect of which neither–

(i)a claim for relief made in accordance with section 306 of the Income and Corporation Taxes Act 1988 has been disallowed; nor

(ii)an assessment has been made pursuant to section 307 of that Act withdrawing or refusing relief by reason of the body corporate in which the shares are held having ceased to be a body corporate which is a qualifying company for the purposes of section 293 of that Act; and

(c)arrangements shall be regarded as constituting a complying fund if they provide that–

(i)the operator will, so far as practicable, make investments each of which, subject to each participant’s individual circumstances, qualify for relief by virtue of Chapter III of Part VII of the Income and Corporation Taxes Act 1988; and

(ii)the minimum subscription to the arrangements made by each participant must be not less than £2,000.]

Textual Amendments