Amendments to the Authorised Investment Funds (Tax) Regulations 2006

2.—(1) The Authorised Investment Funds (Tax) Regulations 2006(1) are amended as follows.

(2) In the heading before regulation 13, omit the words “loan relationships: treatment of”.

(3) After that heading insert—

Deduction of expenses

12A.  Where an authorised investment fund makes an interest distribution for a distribution period, the amount that can be deducted under Step 2 in section 4(2) of CTA 2010 (amounts that can be relieved against the company’s total profits of the period) cannot exceed an amount that would reduce the total profits chargeable to corporation tax for the accounting period in which the last day of the distribution period falls to below the total amount chargeable to corporation tax in accordance with Part 4 of CTA 2009 for that accounting period.

(4) In regulation 13 (treatment of interest distributions for the purposes of loan relationships), in paragraph (1A)(2), after “income” insert “other than income chargeable to corporation tax in accordance with Part 4 of CTA 2009 and”.

(5) In regulation 17 (allocation of income), omit paragraph (2)(3).

(1)

S.I. 2006/964, relevant amending instruments are S.I. 2009/2036, 2010/294, 2012/519 and 2013/2819.

(2)

Paragraph (1A) was inserted by S.I. 2012/519.

(3)

Paragraph (2) was substituted by S.I. 2010/294 and amended by SI 2013/2819.