Section 1158 — Corporation Tax Act 2010: Meaning of “investment trust”

Meaning of “investment trust” 1158 1 For the purposes of the Corporation Tax Acts a company is an “investment trust” with respect to an accounting period if—

a conditions A to C are met throughout the period, and b the company is approved for the period by the Commissioners for Her Majesty's Revenue and Customs (see section 1159).

2 Condition A is that all, or substantially all, of the business of the company is investing its funds in shares, land or other assets with the aim of spreading investment risk and giving members of the company the benefit of the results of the management of its funds.

3 Condition B is that the shares making up the company's ordinary share capital (or, if there are such shares of more than one class, those of each class) are admitted to trading on a regulated market.

4 For this purpose “regulated market” means—

a a UK regulated market within the meaning given by Article 2.1(13A) of Regulation (EU) No 600/2014 of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments, b an EU regulated market within the meaning given by Article 2.1(13B) of that Regulation, and c a Gibraltar regulated market within the meaning given by Article 26(11)(b)(i) of that Regulation.

5 Condition C is that the company is not—

a a venture capital trust (within the meaning of Part 6 of ITA 2007), or b a company UK REIT (within the meaning of Part 12 of this Act).

6 The Treasury may by regulations provide—

a for one or both of conditions A and B to be treated as met in the cases, and subject to any conditions, specified in the regulations, and b for the period for which the condition or conditions are treated as met.

7 The Treasury may also by regulations amend subsection (3) or (4).

8 A statutory instrument containing the first regulations under subsection (6) may not be made unless a draft of the instrument has been laid before and approved by a resolution of the House of Commons.

9 Any other statutory instrument containing regulations under this section is subject to annulment in pursuance of a resolution of the House of Commons.