Meaning of “guaranteed return fund”
9. (1) For the purposes of these Regulations an offshore fund is a guaranteed return fund if conditions A to C are met.
(2) Condition A is that the return on the shares or other interests in the fund is defined by reference to an index.
(3) Condition B is that the assets of the fund which are held to produce the return on the shares or other interests concerned cannot give rise to a return which, if it arose directly to an individual resident in the United Kingdom, would be chargeable to income tax.
(4) Condition C is that it is reasonable to assume that the main purpose, or one of the main purposes, of the arrangements constituting the offshore fund is or was the production for participants of a return that equates, in substance, to the return on an investment of money at interest.