Finance Act 2011

59 Offshore funds U.K.

In Part 8 of TIOPA 2010 (offshore funds), after section 363 insert—

“363A Residence of offshore funds which are undertakings for collective investment in transferable securities

(1) This section applies to an offshore fund (within the meaning of section 355) which—

(a) is, for the purposes of the UCITS Directive, an undertaking for collective investment in transferable securities, and

(b) is authorised pursuant to Article 5 of the UCITS Directive in a Member State other than the United Kingdom.

(2) If—

(a) the offshore fund is a body corporate which, under the law of the Member State in which it is authorised pursuant to Article 5 of the UCITS Directive, is treated as resident in that State for the purposes of any tax imposed under that law on income, and

(b) (apart from this section) the body corporate would be treated as resident in the United Kingdom for the purposes of any enactment (within the meaning of section 354) relating to income tax, corporation tax or capital gains tax,

the body corporate is instead to be treated as if it were not resident in the United Kingdom.

(3) If, by virtue of section 99 or 103A of TCGA 1992, that Act applies in relation to the offshore fund as if it were a company, that Act applies as if the company were neither resident nor ordinarily resident in the United Kingdom (if it would not otherwise do so).

(4) In this section “the UCITS Directive” means Directive 2009/65/EC of the European Parliament and of the Council.”