Commentary

C1.209 Unit trusts and open-ended investment companies

Capital gains tax
Capital gains tax | Commentary

C1.209 Unit trusts and open-ended investment companies

Capital gains tax | Commentary

C1.209 Unit trusts and open-ended investment companies

Capital gains tax treatment of unit trusts

Unit trusts may be authorised or unauthorised. The tax treatment of these types of unit trusts is different.

The tax treatment of the trustees is discussed below. For the unit holder's capital gains position, see C2.803.

Authorised unit trusts

An authorised unit trust is a unit trust scheme in which an order under the Financial Services and Markets Act 2000, s 243 is in force during the whole or part of the relevant accounting period1. This is discussed in D8.110. Authorised unit trusts are one of the two legal forms that can be used by an authorised investment fund (also known as AIF). The other type of authorised investment fund is an open-ended investment company (see below).2

The trustees of an authorised unit trust are treated

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