Finance Act 1996

Authorised unit trusts

2 (1) The provisions of this Chapter so far as they relate to the creditor relationships of a company shall not apply for the purposes of corporation tax in computing the profits or losses of an authorised unit trust.

(2) For the purposes of corporation tax the profits and gains, and losses, that are to be taken to arise from the creditor relationships of an authorised unit trust shall be computed—

(a) in accordance with the provisions applicable, in the case of unauthorised unit trusts, for the purposes of income tax; and

(b) as if the provisions so applicable had effect in relation to an accounting period of an authorised unit trust as they have effect, in the case of unauthorised unit trusts, in relation to a year of assessment.

(3) In relation to the first accounting period of any authorised unit trust to end after 31st March 1996, the reference in sub-paragraph (2)(a) above to the provisions applicable for the purposes of income tax is a reference to the provisions so applicable for the year 1996-97.

(4) In this paragraph “unauthorised unit trust” means the trustees of any unit trust scheme which is not an authorised unit trust but is a unit trust scheme for the purposes of section 469 of the Taxes Act 1988.