“Participants chargeable to corporation tax: holdings in qualified investor schemes where scheme does not meet the genuine diversity of ownership condition51.

(1)

This regulation applies if—

(a)

a participant has a holding in a qualified investor scheme, and

(b)

the scheme has not met the genuine diversity of ownership condition in regulation 14B in relation to an accounting period.

(2)

Section 212 of TCGA 199218 (annual deemed disposal of holdings of unit trusts etc.) does not apply to the participant in relation to that accounting period.

(3)

Paragraph 4 of Schedule 10 to FA 199619 (company holdings in unit trusts and offshore funds) shall not apply to the participant in relation to that accounting period.”.