The Charities (Accounts and Reports) Regulations 2008

PART 6 INTERPRETATION

17.—(1) In this Schedule—

“dividend equalisation reserve” means income withheld from distribution with a view to avoiding fluctuations in the amounts distributed;

“the IMA SORP” means the Statement of Recommended Practice for Financial Statements of Authorised Funds issued by the Investment Management Association in December 2005(1);

“person connected with a charity trustee or manager” has the meaning given by sub-paragraph (2);

“recognised stock exchange” has the meaning given by section 1005 of the Income Tax Act 2007(2);

(2) For the purposes of this Schedule, a person (“A”) is connected with a charity trustee or a person to whom functions in relation to the management of the investment fund have been delegated if—

(a) A is the child, parent, grandchild, grandparent, brother or sister of the charity trustee or manager;

(b) A is the spouse or the civil partner of—

(i) the charity trustee or manager; or

(ii) any person connected with a charity trustee or manager by virtue of paragraph (a);

(c) A is—

(i) the trustee of any trust—

(aa) which is not a charity; and

(bb) the beneficiaries or potential beneficiaries of which include the charity trustee or manager or any person connected with that trustee or manager by virtue of paragraph (a) or (b); and

(ii) acting in his capacity as trustee of that trust;

(d) A is—

(i) carrying on a business in partnership with—

(aa) the charity trustee or manager; or

(bb) any person connected with a trustee or manager by virtue of paragraph (a), (b) or (c); and

(ii) acting in his capacity as such a business partner; or

(e) A is a body corporate—

(i) which is not a company which is connected with a charitable institution within the meaning of section 58(5) of the Charities Act 1992(3); but

(ii) in which—

(aa) the charity trustee or manager has; or

(bb) the charity trustee or manager, any other trustee or manager of the investment fund or persons connected with him or them by virtue of paragraphs (a), (b), (c) or (d), taken together, have,

a substantial interest.

(3) For the purposes of sub-paragraph (2)—

(a) “child” has the meaning given by paragraph 2 of Schedule 5 to the 1993 Act;

(b) whether a person controls an institution is to be determined in accordance with paragraph 3 of that Schedule; and

(c) whether a person has a substantial interest in a body corporate is to be determined in accordance with paragraph 4 of that Schedule.

(1)

Copies of the IMA SORP are available from the Investment Management Association, 65 Kingsway, London WC2B 6TD.

(2)

2007 c. 3. Section 1005 of the Income Tax Act 2007 was amended by paragraph 1 of Schedule 26 to the Finance Act 2007 (c. 11).

(3)

1992 c. 41.