22.—(1) No tax is charged on the trustees of an exempt unauthorised unit trust under regulation 17 of the Offshore Funds Regulations on the disposal of an interest in a non-reporting fund if the reporting condition is met.
(2) The reporting condition is met if—
(a)the trustees prepare computations of reportable income for the fund for all accounting periods which, if the fund were a reporting fund, would be reporting periods ending on or before the day of disposal, and
(b)any excess of the trustees' share of the reportable income of the non-reporting fund over their share of the distributions made by the non-reporting fund is included in the amount mentioned in regulation 15(2) for each period of account ending on or before that day.
(3) Nothing in paragraph (2) applies in relation to any time before the date on which the trustees acquire or re-acquire the interest.
(4) The trustees are treated for all purposes as if they had disposed of and immediately reacquired an interest in a non-reporting fund on a date they specify if in the event of a subsequent disposal of the interest—
(a)the reporting condition would not be met in relation to times before the date, but
(b)the trustees reasonably expect the reporting condition will be met in relation to times on and after the date.
(5) The date the trustees specify must be included in an appropriate entry in their return made under section 8A of TMA 1970 for the period of account in which the date falls but the date must not be earlier than 6 April 2014.
(6) The deemed disposal and reacquisition of the interest is taken to be for a consideration equal to its market value on the specified date.
(7) In this regulation—
“market value” has the meaning given by regulation 10 of the Offshore Funds Regulations,
“reporting fund” has the meaning given by regulation 50 of those Regulations, and
“reporting period” has the meaning given by regulation 91 of those Regulations.
(8) If a non-reporting fund is a UCITS fund for the purposes of regulation 12 M1 of the Offshore Funds Regulations, regulation 80 of those regulations (treatment of investment transactions carried out by diversely owned funds) applies for the purposes of the computations mentioned in paragraph (2)(a).
Marginal Citations
M1Regulation 12 was amended by S.I. 2011/1121.