The Authorised Investment Funds (Tax) Regulations 2006

[F1Breach of conditions: generalU.K.
This section has no associated Explanatory Memorandum

69Z65.—(1)  This regulation applies if a Tax Elected Fund—

(a)does not meet one of the TEF conditions, and

(b)becomes aware that it does not meet the condition.

(2) Within 28 days of becoming aware of the breach, the fund 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 fund became aware of the breach;

(c)details of the condition that was breached;

(d)the nature of the breach;

(e)the steps the fund proposes to take to rectify the breach;

(f)the date by which the fund proposes to rectify the breach; and

(g)where there has been a previous breach of the TEF conditions, details of the condition that was breached on that occasion, the date of that breach and the date that breach was rectified.

(3) The date referred to in paragraph (2)(f) must be the earliest date by which the objective of complying with the relevant condition may reasonably be achieved.

(4) The Commissioners must give a termination notice to the fund if—

(a)the steps that the fund proposes to take will not rectify the breach;

(b)the date by which the fund proposes to rectify the breach is not the earliest date by which the objective of remedying the relevant condition may reasonably be achieved;

(c)the fund is intentionally or negligently in breach of a condition; or

(d)there are three breaches of the same TEF condition in a period of ten years beginning with the first day of the accounting period in which the fund becomes aware of the first of those breaches.]

Textual Amendments