Commentary

B5.702 General

Business tax
Business tax | Commentary

B5.702 General

Business tax | Commentary

B5.702 General

Subject to transitional provisions the principal 2009 regulations have effect:

  1.  

    (a)     for income tax purposes from the tax year 2009–10 onwards and for distributions made on or after 1 December 20091;

  2.  

    (b)     for the purposes of corporation tax on income for accounting periods ending on or after 1 December 2009 and for distributions made on or after that date;

  3.  

    (c)     for the purposes of corporation tax on capital gains for disposals made on or after 1 December 20092;

  4.  

    (d)     for the purposes of capital gains tax for disposals made on or after 1 December 20093.

Offshore fund

For these purposes an offshore fund means4:

  1.  

    (i)     a mutual fund which is a body corporate (other than an LLP5) resident outside the UK;

  2.  

    (ii)     a mutual fund under which property is held on trust for the participants where the trustees are not resident in the UK;

  3.  

    (iii)     a mutual fund which is other arrangements that create, under foreign law, rights in the nature of co-ownership6 (other than a mutual fund which is two or more persons carrying on a trade or business in partnership7).

Reference to participants in arrangements or a fund are to persons taking part in the arrangements (or the arrangements consisting the fund) whether by becoming the owner of any part of the property that is the subject of the arrangements or otherwise, and references to participation are to be read accordingly8.

Investment bond arrangements, a form of alternative finance arrangement (see A1.302), are not an offshore fund for capital gains

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