SCHEDULE 27DISTRIBUTING FUNDS
PART IIMODIFICATIONS OF CONDITIONS FOR CERTIFICATION IN CERTAIN CASES
Disregard of certain investments forming less than 5 per cent. of a fund
13
(1)
In any case where—
(a)
in any account period of an offshore fund, the assets of the fund include a holding of issued share capital (or any class of issued share capital) of a company; and
(b)
that holding is such that by virtue of section 760(3)(c) the fund could not (apart from this paragraph) be certified as a distributing fund in respect of that account period;
then, if the condition in sub-paragraph (3) below is fulfilled, that holding shall be disregarded for the purposes of section 760(3)(c).
(2)
In this paragraph any holding falling within sub-paragraph (1) above is referred to as an “excess holding”.
(3)
The condition referred to in sub-paragraph (1) above is that at no time in the account period in question does that portion of the fund which consists of—
(a)
excess holdings, and
(b)
interests in other offshore funds which are not qualifying funds,
exceed 5 per cent. by value of all the assets of the fund.