F1PART 4APROPERTY AIFS

CHAPTER 4DISTRIBUTIONS MADE BY PROPERTY AIFS

F2Allocation of income69Z14.

F3The total amount available for income allocation in an open-ended investment company to which this Part applies shall be attributed

(a)

first, to property income distributions up to the amount of the net income of F (tax-exempt) (determined in accordance with regulation 69Z1),

(b)

secondly, to PAIF distributions (interest) up to the pre-distribution amount (determined in accordance with regulation 69Z3), and

(c)

finally, to PAIF distributions (dividends).

Property income distributions69Z15.

(1)

This regulation applies if—

(a)

an open-ended investment company to which this Part applies makes a distribution, and

(b)

the amount distributed includes sums attributed to property income distributions.

(2)

The Tax Acts shall have effect as if the sums were payments made on the distribution date by the company to the participants in proportion to their rights.

(3)

Regulation 69Z18 (property income distributions: liability to tax of participants) explains how a property income distribution received by a participant is treated.

(4)

In these Regulations a “property income distribution” means a sum attributed to property income distributions which is distributed (including a payment made to a participant who is not chargeable to income tax or corporation tax).

PAIF distributions (interest)69Z16.

(1)

This regulation applies if—

(a)

an open-ended investment company to which this Part applies makes a distribution, and

(b)

the amount distributed includes sums attributed to PAIF distributions (interest).

(2)

The Tax Acts shall have effect as if the sums were payments of yearly interest made on the distribution date by the company to the participants in proportion to their rights.

(3)

In this Part a “PAIF distribution (interest)” means a sum attributed to PAIF distributions (interest) which is distributed (including a payment made to a participant who is not chargeable to income tax).

PAIF distributions (dividends)69Z17.

(1)

This regulation applies if—

(a)

an open-ended investment company to which this Part applies makes a distribution, and

(b)

the amount distributed includes sums attributed to PAIF distributions (dividends).

(2)

The Tax Acts shall have effect as if the sums were dividends on shares paid on the distribution date by the company to the participants in proportion to their rights.

(3)

In this Part a “PAIF distribution (dividends)” means a sum attributed to PAIF distributions (dividends) which is distributed (including a dividend treated as paid to a participant who is not chargeable to corporation tax).