[F1Disposal of an interest in an authorised investment fund prior to its becoming a FINROFU.K.
85L.—(1) This regulation applies if an authorised investment fund either meets the investment condition or becomes an elective FINROF in accordance with regulation 85F.
(2) A participant in the fund may make an election to be treated for the purposes of TCGA 1992—
(a)as disposing of all the units that they hold in the authorised investment fund on the deemed disposal date, and
(b)as immediately upon that disposal, acquiring units in the FINROF.
(3) The disposal referred to in paragraph (2)(a) is treated as made for a consideration equal to the market value of the participant’s holding of units in the fund on the deemed disposal date.
(4) The acquisition referred to in paragraph (2)(b) is treated as made for a consideration equal to the consideration for the disposal referred to in paragraph (2)(a).
(5) If the participant is chargeable to income tax, the election mentioned in paragraph (2) must be made by being included in a return made for the tax year which includes the deemed disposal date.
(6) If the participant is chargeable to corporation tax, the election mentioned in paragraph (2) must be made by being included in the participant’s company tax return for the accounting period which includes the deemed disposal date.
(7) In this regulation—
(a)“company tax return” has the same meaning as in Schedule 18 to the Finance Act 1998, and
(b)“deemed disposal date” means the date on which this Part begins to apply to the authorised investment fund.]
Textual Amendments
F1Pt. 6A inserted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Authorised Investment Funds (Tax) (Amendment) Regulations 2010 (S.I. 2010/294), regs. 1(1), 21 (with regs. 25, 26)