Legislation – Finance (No. 2) Act 2024
Changes to legislation:
There are currently no known outstanding effects for the Finance (No. 2) Act 2024, Section 20.
Changes to Legislation
Revised legislation carried on this site may not be fully up to date. At the current time any known changes or effects made by subsequent legislation have been applied to the text of the legislation you are viewing by the editorial team. Please see ‘Frequently Asked Questions’ for details regarding the timescales for which new effects are identified and recorded on this site.
Measures relating to financial services
20Collective investment schemes: co-ownership schemes
(1)
The Treasury may by regulations make provision applying any provision about tax that applies in connection with authorised co-ownership schemes so that the provision applies (with or without modifications) in connection with any co-ownership scheme which—
(a)
is not an authorised co-ownership scheme,
(b)
is an AIF, as defined by regulation 3 of the Alternative Investment Fund Managers Regulations 2013 (S.I. 2013/1773),
(c)
meets the conditions set out in section 261E(2) and (3) of the Financial Services and Markets Act 2000 (participation limited to professional or large investors), and
(d)
meets such other conditions as are set out in regulations under this section,
and such a scheme is referred to as a “Reserved Investor Fund (Contractual Scheme)” (or a “RIF”).
(2)
(a)
set conditions about a scheme’s connection with the United Kingdom, its diversity of ownership, the kinds of property it holds and the tax status of its participants;
(b)
set such other conditions that the Treasury consider appropriate for the purposes of a scheme becoming, or remaining, a RIF;
(c)
make provision about the tax consequences that follow a co-ownership scheme meeting or ceasing to meet one or more of the conditions for being a RIF.
(3)
(a)
imposing procedural requirements in respect of a co-ownership scheme becoming, or ceasing to be, a RIF;
(b)
treating a co-ownership scheme as meeting a condition for a specified period for the purposes of the scheme becoming a RIF, or remaining a RIF for that period;
(c)
allowing a RIF to remedy a breach of a condition for the purposes of remaining a RIF;
(d)
about the accounts that must be kept in relation to a RIF (and such provision may be made by reference to a document as amended from time to time);
(e)
requiring information and notices to be submitted to His Majesty’s Revenue and Customs (“HMRC”);
(f)
imposing penalties for failure to comply with requirements.
(4)
Regulations under this section may—
(a)
confer a discretion on HMRC to do anything under, or for the purposes of, the regulations;
(b)
include consequential, incidental, supplementary, transitional, transitory or saving provision;
(c)
amend, or otherwise modify, any enactment (whenever passed or made).
(5)
A power to make regulations under this section is exercisable by statutory instrument subject to annulment in pursuance of a resolution of the House of Commons.
(6)
In this section—
“authorised co-ownership scheme” means a co-ownership scheme authorised for the purposes of the Financial Services and Markets Act 2000 by an authorisation order in force under section 261D(1) of that Act;
“co-ownership scheme” has the meaning given by section 235A(2) of that Act.