http://www.legislation.gov.uk/ukpga/2005/5/section/378AIncome Tax (Trading and Other Income) Act 2005An Act to restate, with minor changes, certain enactments relating to income tax on trading income, property income, savings and investment income and certain other income; and for connected purposes.texttext/xmlenStatute Law Database2026-07-30Expert Participation2026-07-15 Income Tax (Trading and Other Income) Act 2005s. 168(6)(e) and wordPlanning (Consequential Provisions) (Wales) Act 2026Deddf Cynllunio (Darpariaethau Canlyniadol) (Cymru) 2026Sch. 2 para. 370(b)Sch. 5 Pt. 1s. 5(2) Part 4Chapter 2378A1This section applies where—aa dividend is paid by an offshore fund, andbthe offshore fund fails to meet the qualifying investments test at any time in the relevant period.2The dividend is treated as interest for income tax purposes.3For the purposes of this section, an offshore fund fails to meet the qualifying investments test if the market value of the fund's qualifying investments exceeds 60% of the market value of all of the assets of the fund (excluding cash awaiting investment).4“The relevant period” means—athe relevant period of account of the offshore fund, orbif longer, the period of 12 months ending on the last day of that period.5“The relevant period of account” means—athe last period of account ending before the dividend is paid, in a case in which the profits available for distribution at the end of that period (and not used since then by distribution or otherwise) equal or exceed the amount of the dividend (aggregated with any other distribution made by the offshore fund at the same time), andbthe period of account in which the dividend is paid, in any other case.6This section applies to a manufactured overseas dividend if, and only if, it is representative of a distribution to which this section would apply.7In this section—“dividend” includes any distribution that (but for this section) would be treated as a dividend for income tax purposes;“manufactured overseas dividend” has the same meaning as in Chapter 2 of Part 11 of ITA 2007 (manufactured payments);“offshore fund” has the same meaning as in section 354 of TIOPA 2010 (see sections 355 to 363 of that Act);“qualifying investments” has the meaning given in section 494 of CTA 2009.S. 378A applied (1.12.2009) (with effect in accordance with art. 1(2)(3) of, Sch. 1 to the amending S.I.) by The Offshore Funds (Tax) Regulations 2009 (S.I. 2009/3001), regs. 1(1), 96(3)(a)Words in s. 378A(7) substituted (1.4.2010) (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 8 para. 168 (with Sch. 9 paras. 1-9, 22)S. 378A inserted (with effect in accordance with s. 39(5) of the amending Act) by Finance Act 2009 (c. 10), s. 39(3)