Investment trustsD7.332 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 approval by HMRCFor accounting periods beginning on or after 1 January 20121 a company is an investment trust if: • it meets conditions A to C (the 'eligibility conditions' — see below) • any conditions specified in regulations, and • is approved by HMRCThe eligibility conditions are as follows2: (A) all or substantially all, of the
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 conditions A to C (the 'eligibility conditions' — see below)
• any conditions specified in regulations, and
• is approved by HMRC
The eligibility conditions are as follows2:
(A) all or substantially all, of the
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.