Textual Amendments
F1Pt. 4A inserted (6.4.2008) by The Authorised Investment Funds (Tax) (Amendment) Regulations 2008 (S.I. 2008/705), regs. 1, 5
69Z4.—(1) This regulation applies if an open-ended investment company to which this Part applies is in breach of the genuine diversity of ownership condition.
(2) Within 28 days of becoming aware of the breach, the company must provide the following information to the Commissioners—
(a)the date on which the condition first ceased to be met;
(b)the date on which the company became aware of the breach;
(c)details of the condition that was breached;
(d)the nature of the breach;
(e)the steps the company proposes to take to rectify the breach; and
(f)the date by which the company proposes to rectify the breach.
(3) The date referred to in paragraph (2)(f) must be the earliest date by which the objective of complying with the genuine diversity of ownership condition may reasonably be achieved.
(4) The Commissioners may give a termination notice to the company if—
(a)the steps that the company proposes to take will not rectify the breach, or
(b)the date by which the company proposes to rectify the breach is not the earliest date by which the objective of remedying the genuine diversity ownership condition may reasonably be achieved.
(5) If there are three different breaches of the genuine diversity of ownership condition in three different accounting periods in a period of ten years beginning with the first day of the accounting period in which the company becomes aware of the first of those breaches, the Commissioners may give a termination notice to the company.
69Z5.—(1) This regulation applies if an open-ended investment company to which this Part applies is in breach of the corporate ownership condition.
(2) If there is a breach which is caused by the action of a shareholder in the company and the company has not taken reasonable steps to prevent the breach (so that, accordingly, there is a charge to corporation tax under regulation 69Z12) (a “specified breach”), this Part shall continue to apply to the company despite the breach (but see paragraph (3) and regulation 69Z8).
(3) If there are three specified breaches in a period of ten years beginning with the first day of the accounting period in which the first specified breach occurs, the Commissioners may give a termination notice to the company.
69Z6.—(1) This regulation applies if an open-ended investment company to which this Part applies is in breach of the loan creditor condition.
(2) If the company is inadvertently in breach of the loan creditor condition but rectifies the breach within a period of 28 days beginning with the day on which the company first becomes aware of the breach, this Part shall continue to apply to the company despite the breach (but see paragraphs (5) and (6) and regulation 69Z8).
(3) If the company is inadvertently in breach of the loan creditor condition but does not rectify the breach within a period of 28 days beginning with the day on which the company first becomes aware of the breach, the Commissioners may give a termination notice to the company.
(4) If the company is intentionally or negligently in breach of the loan creditor condition, the Commissioners may give a termination notice to the company.
(5) If the company is in breach of the same condition specified in paragraphs (2) to (5) of regulation 69M in two different accounting periods in a period of ten years beginning with the first day of the accounting period in which the company becomes aware of the first of those breaches, the Commissioners may give a termination notice to the company.
(6) If the company is in breach of the conditions specified in paragraphs (2) to (5) of regulation 69M in three different accounting periods in a period of ten years beginning with the first day of the accounting period in which the company becomes aware of the first of those breaches, the Commissioners may give a termination notice to the company.
69Z7.—(1) Paragraph (2) applies if a newly qualified company—
(a)is in breach of condition A set out in regulation 69N(2)(a) in its first accounting period, or
(b)is in breach of condition B set out in regulation 69N(3)(a) at the end of its first accounting period.
(2) This Part shall cease to apply to the company at the end of its first accounting period and regulation 69Z41 shall apply.
(3) Paragraphs (4) to (7) apply if an open-ended-investment company to which this Part applies—
(a)is in breach of condition A set out in regulation 69N(2)(b) in an accounting period, or
(b)is in breach of condition B set out in regulation 69N(3)(b) at the end of an accounting period.
(4) If the conditions specified in paragraph (6) are met, this Part shall continue to apply to the company despite the breach (but see paragraph (7) and regulation 69Z8).
(5) If the conditions specified in paragraph (6) are not met, the Commissioners may give a termination notice to the company.
(6) The conditions are that—
(a)property investment business is at least 50% of the company’s net income in the accounting period,
(b)the value of the assets involved in property investment business is at least 50% of the total value of assets held by the company at the end of the accounting period.
(7) If this regulation applies to a company in three different accounting periods in a period of ten years beginning with the first day of the accounting period in which the company becomes aware of the first of those breaches, the Commissioners may give a termination notice to the company.
69Z8.—(1) This regulation applies in relation to an open-ended investment company to which this Part applies if—
(a)there has been a breach of at least two of the conditions in [F2regulation 9A or] regulations 69E to 69N,
(b)at least one of the conditions breached is contained in a different regulation from that containing another of those breached, and
(c)there have been five breaches in a period of ten years beginning with the first day of the accounting period in which the first breach occurs.
(2) The Commissioners may give a termination notice to the company.]
Textual Amendments
F2Words in reg. 69Z8(1)(a) inserted (1.9.2009) by The Authorised Investment Funds (Tax) (Amendment) Regulations 2009 (S.I. 2009/2036), regs. 1, 22