Commentary

B5.726 Constant NAV funds

Business tax
Business tax | Commentary

B5.726 Constant NAV funds

Business tax | Commentary

B5.726 Constant NAV funds

An offshore fund may be treated as a 'constant NAV fund' if the net asset value of the fund, as expressed in the currency in which the units are issued, will not fluctuate by more than an insignificant amount throughout the fund's existence, and this condition is met as a result of the nature of the fund's assets and the frequency with which the fund distributes its income1. The regulations relating to reporting funds apply to constant NAV funds with certain modifications2.

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