Investment trusts—post 1 January 2012D7.332 Definition of an investment trustFor accounting periods beginning on or after 1 January 2012, the definition of an investment trust was simplified. The stated intention behind these changes is to remove unnecessary restrictions on a company's commercial activities, provide increased certainty for investors and provide a more flexible framework that prevents unintended tax advantages being gained through investing in an investment trust company while ensuring a proportionate approach for minor inadvertent breaches. Conditions for approvalFor accounting periods beginning on or after 1 January 20121 a company is an investment trust if it meets the following conditions A to C (the 'eligibility conditions'), any conditions specified in regulations and is also approved by HMRC. The eligibility conditions are as follows2: (a) all or substantially all, of the business of the company is investing in
For accounting periods beginning on or after 1 January 2012, the definition of an investment trust was simplified. The stated intention behind these changes is to remove unnecessary restrictions on a company's commercial activities, provide increased certainty for investors and provide a more flexible framework that prevents unintended tax advantages being gained through investing in an investment trust company while ensuring a proportionate approach for minor inadvertent breaches.
For accounting periods beginning on or after 1 January 20121 a company is an investment trust if it meets the following conditions A to C (the 'eligibility conditions'), any conditions specified in regulations and is also approved by HMRC.
The eligibility conditions are as follows2:
(a) all or substantially all, of the business of the company is investing in
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