Finance (No. 2) Act 2023

Part 1 UK property rich collective investment vehicles etc

Genuine diversity of ownership

1 (1) Schedule 5AAA to TCGA 1992 is amended as follows.

(2) In paragraph 7 (appropriate connection)—

(a) in sub-paragraph (5)—

(i) in paragraph (a), for “it meets” substitute “the vehicle meets or, if the vehicle is part of multi-vehicle arrangements, the arrangements meet”;

(ii) in paragraph (b), for “it meets” substitute “the vehicle meets, or those multi-vehicle arrangements meet,”;

(iii) omit the words after paragraph (b);

(b) after that sub-paragraph insert—

“(5A) For the purposes of sub-paragraph (5), those Regulations have effect as if references to a fund included—

(a) multi-vehicle arrangements, and

(b) a collective investment vehicle which is not an offshore fund.”;

(c) after sub-paragraph (7) insert—

“(8) In this Schedule “multi-vehicle arrangements” means arrangements comprising two or more vehicles under which an investor in one of those vehicles would reasonably regard that investment as an investment in the arrangements as a whole rather than exclusively in any particular vehicle.”

(3) In paragraph 13 (qualifying conditions)—

(a) in sub-paragraph (3)—

(i) in paragraph (a), for “it meets” substitute “the scheme meets or, if the scheme is part of multi-vehicle arrangements, the arrangements meet”;

(ii) in paragraph (b), for “it meets” substitute “the scheme meets, or those multi-vehicle arrangements meet,”;

(iii) omit the words after paragraph (b);

(b) after that sub-paragraph insert—

“(3A) For the purposes of sub-paragraph (3), those Regulations have effect as if references to a fund included—

(a) multi-vehicle arrangements, and

(b) a collective investment scheme which is not an offshore fund.”

(4) In paragraph 46 (meaning of qualifying investor etc)—

(a) in sub-paragraph (4)—

(i) in paragraph (a), for “it meets” substitute “the vehicle meets or, if the vehicle is part of multi-vehicle arrangements, the arrangements meet”;

(ii) in paragraph (b), for “it meets” substitute “the vehicle meets, or those multi-vehicle arrangements meet,”;

(iii) omit the words after paragraph (b);

(b) after that sub-paragraph insert—

“(4A) For the purposes of sub-paragraph (4), those Regulations have effect as if references to a fund included—

(a) multi-vehicle arrangements, and

(b) a collective investment vehicle which is not an offshore fund.”

(5) In paragraph 46A (application of diversity of ownership condition), after sub-paragraph (3) insert—

“(4) Where the collective investment vehicle is part of multi-vehicle arrangements, sub-paragraphs (2) and (3) apply as if references to the vehicle included the multi-vehicle arrangements.”

(6) In paragraph 47 (other definitions), in sub-paragraph (1) at the appropriate place insert—

• ““multi-vehicle arrangements” has the meaning given by paragraph 7(8);”.

(7) In paragraph 51 (genuine diversity of ownership condition in case of funds existing before 6 April 2020), after sub-paragraph (2) insert—

“(3) Where the collective investment vehicle is part of multi-vehicle arrangements, sub-paragraph (2) applies as if references to the vehicle included the multi-vehicle arrangements.”