Modified application of Chapter 10U.K.
This section has no associated Explanatory Memorandum
123. For regulations 108 to 115 substitute—
“Consequences of rise in net asset value of fund
108A.—(1) This regulation applies if—
(a)this Part applies to a constant NAV fund,
(b)the net asset value of the fund (expressed in the currency in which units are issued) has risen by more than an insignificant amount, and
(c)the fund has not notified HMRC that it has ceased to be a constant NAV fund.
(2) But this regulation does not apply if the net asset value of a constant NAV fund (expressed in the currency in which units are issued) has fallen by more than an insignificant amount.
(3) A participant who disposes of an interest in the fund and who makes a chargeable gain on the disposal is treated as making an offshore income gain.”.