Finance Act 2014

Amendment of Part 27 of Principal Act (unit trusts and offshore funds)

30. Part 27 of the Principal Act is amended by substituting the following for Chapter 5:

“Chapter 5

Relevant UCITS and Relevant AIF

Tax treatment of a relevant UCITS or a relevant AIF

747G. (1) In this section—

‘AIF’ means an alternative investment fund within the meaning of the relevant AIFM Directives;

‘AIFM’ means alternative investment fund manager;

‘alternative investment fund manager’ means a person whose regular business is managing one, or more than one, AIF;

‘branch or agency’ has the same meaning as in section 4;

‘EEA state’ has the same meaning as in section 747B;

‘management company’, in relation to a relevant UCITS, means a management company within the meaning of the relevant UCITS Directives;

‘relevant AIF’ means an AIF which is formed under the laws of a jurisdiction other than the State and which is not an investment undertaking within the meaning of section 739B;

‘relevant AIFM Directives’ means Directive 2011/61/EU of the European Parliament and of the Council of 8 June 2011 4 on Alternative Investment Fund Managers and any Directive amending that Directive;

‘relevant profits’, in relation to a relevant UCITS or a relevant AIF, means the profits which would be relevant profits (within the meaning of section 739B) if the relevant UCITS or the relevant AIF were an investment undertaking (within the meaning of that section);

‘relevant UCITS’ means an undertaking for collective investment in transferable securities—

(a) to which the relevant UCITS Directives apply, and

(b) which is formed under the laws of any Member State other than the State and which is not an investment undertaking within the meaning of section 739B;

‘relevant UCITS Directives’ means Directive 2009/65/EC of the European Parliament and of the Council of 13 July 2009 5 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS), and any Directive amending that Directive.

(2) Notwithstanding anything in the Tax Acts and the Capital Gains Tax Acts—

(a) a relevant UCITS which is managed by a management company authorised under any laws of the State which implement the relevant UCITS Directives, or

(b) a relevant AIF which is managed—

(i) by an AIFM authorised under any laws of the State which implement the relevant AIFM Directives, or

(ii) through a branch or agency in the State of an AIFM authorised under the laws of an EEA state,

shall not be chargeable to tax under those Acts in respect of so much of relevant profits as would be, apart from this subsection, so chargeable solely by virtue of the relevant UCITS or the relevant AIF, as the case may be, being so managed.

(3) An interest in a relevant UCITS or a relevant AIF shall be treated for the purposes of this Part as an interest in a company, scheme or arrangement specified in section 743(1).”.

4OJ No. L174, 1.7.2011, p.1

5OJ No. L302, 17.11.2009, p.32