SCHEDULES
SCHEDULE 22Offshore funds
Part 1Meaning of “offshore fund”
Restriction on regulation-making power under section 41 of FA 2008
6
1
Regulations under section 41 of FA 2008 may not make provision about the treatment of a person in respect of any rights in an affected offshore fund that are acquired by the person—
a
before 1 December 2009, or
b
in accordance with sub-paragraph (2),
(but see sub-paragraph (4)).
2
Rights are acquired in accordance with this sub-paragraph if—
a
the rights are acquired by the participant in accordance with a legally enforceable agreement in writing that was entered into by the participant before 30 April 2009,
b
if the agreement was conditional, the conditions are satisfied before that date, and
c
the agreement is not varied on or after that date.
3
Rights of a person in a fund are rights in an affected offshore fund if—
a
the fund is an offshore fund within the meaning of section 40A of FA 2008, but
b
on the date on which the person acquired them, the fund was not an offshore fund within the meaning of Chapter 5 of Part 17 of ICTA.
4
Sub-paragraph (1) does not prevent regulations under section 41 of FA 2008 making—
a
provision for a person to elect to be treated in accordance with the regulations in respect of rights referred to in that sub-paragraph, or
b
provision that does not increase the person's liability to tax in respect of such rights.