Commentary

D8.110 Definition

Corporate tax
Corporate tax | Commentary

D8.110 Definition

Corporate tax | Commentary

Authorised investment funds

D8.110 Definition

Authorised investment funds are all authorised unit trust schemes and open-ended investment companies1.

Authorised unit trust

A unit trust scheme is 'authorised' in relation to an accounting period if an order under FISMA 2000, s 243 is in force in relation to that scheme during the whole or part of that accounting period2.

The legislation affecting authorised unit trusts has changed considerably since the enactment of the Financial Services Act 1986 (subsequently repealed and substantially replaced by the Financial Services and Markets Act 2000). Tax policy in this area has had to steer a careful course between the conflicting requirements of maintaining a 'level playing field' vis-à-vis other UK investment media, while also recognising that the UK unit trust industry faced competition from funds created in the European Community under the UCITS Directive (see B5.718), which prior to IP completion day (defined as from 11pm on 31 December 2020) could be marketed in the UK, and which benefited from more lenient tax regimes. After IP completion day, all non-UK funds including

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