The Offshore Funds Regulations 2004

Modification of Schedule 26 to the Finance Act 2004: new funds within existing umbrella funds

6.—(1) This regulation applies to an umbrella fund established on or before 22nd July 2004 and which has not made an election under paragraph 1(3) or paragraph 2(3) of Schedule 26 to the Finance Act 2004(1) (elections in respect of computation of UK equivalent profits from creditor relationships and derivative contracts).

(2) Paragraph (3) applies to a part of a fund which—

(a) is regarded as a separate offshore fund by virtue of section 756B(2) of ICTA 1988; and

(b) is established after 22nd July 2004.

(3) In relation to a part of a fund to which this paragraph applies, the repeals contained in paragraph 1(2) or 2(2) of Schedule 26 to the Finance Act 2004 (as the case requires) shall be disregarded, and accordingly—

(a) paragraph 3 of Schedule 10 to the Finance Act 1996(2), (assumptions to be made in relation to creditor relationships for the purposes of Schedule 27 to ICTA 1988), or

(b) paragraph 35 of Schedule 26 to the Finance Act 2002(3) (assumptions to be made in relation to derivative contracts for those purposes),

(as the case requires) shall apply in relation to that part of the umbrella fund as they would have applied had those repeals not been enacted.

(1)

2004 c. 12.

(2)

1996 c. 8. Paragraph 3 was substituted by paragraph 39 of Part 1 of Schedule 25 to the Finance Act 2002 (c. 23).

(3)

2002 c. 23.