SCHEDULES

SCHEDULE 22Offshore funds

Part 2Application of TCGA 1992 to offshore funds

Modification of acquisition cost

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1

This paragraph applies where a participant in a relevant offshore fund—

a

holds rights in a relevant offshore fund immediately before the effective date, and

b

disposes of those rights on or after that date.

2

For the purposes of TCGA 1992 the participant is to be treated as if the acquisition cost for those rights were the pre-commencement acquisition cost.

3

The effective date” means—

a

if the participant has made an election under paragraph 15, the election day, or

b

otherwise, the commencement day.

4

Acquisition cost” means the total of the consideration, costs and expenditure described in section 38(1)(a) and (b) of TCGA 1992 (acquisition and disposal costs etc).

5

Pre-commencement acquisition cost” means the total of the consideration, costs and expenditure that would have been allowable as a deduction under section 38(1)(a) and (b) of TCGA 1992 if the participant had disposed of the rights immediately before the effective date.