Section 102A — Finance Act 2003: Co-ownership ... contractual schemes

Co-ownership ... contractual schemes 102A 1 This section has effect for the purposes of this Part.

2 This Part, with the exception of Schedule 7 (see subsection (10)), applies in relation to a co-ownership ... contractual scheme as if—

a the scheme were a company, and b the rights of the participants were shares in the company. 2A In this Part, a “ co-ownership contractual scheme ” means—

a a co-ownership authorised contractual scheme, or b a Reserved Investor Fund (Contractual Scheme).

3 An “ umbrella scheme ” means a co-ownership ... contractual scheme—

a whose arrangements provide for separate pooling of the contributions of the participants and the profits or income out of which payments are made to them (“pooling arrangements”),

and b under which the participants are entitled to exchange rights in one pool for rights in another.

4 A “ sub-scheme ”, in relation to an umbrella scheme , means such of the pooling arrangements as relate to a separate pool.

5 Each of the sub-schemes of an umbrella scheme is regarded as a separate co-ownership ... contractual scheme, and the umbrella scheme as a whole is not so regarded.

6 In relation to a sub-scheme of an umbrella scheme —

a references to chargeable interests are references to such of the chargeable interests as under the pooling arrangements form part of the separate pool to which the sub-scheme relates, and b references to the scheme documents are references to such parts of the documents as apply to the sub-scheme.

7 References to a co-ownership authorised contractual scheme are treated as including a collective investment scheme which—

a is constituted under the law of an EEA State ... by a contract, b is managed by a body corporate incorporated under the law of any part of the United Kingdom or of an EEA State, and c is authorised under the law of the EEA State mentioned in paragraph (a) in a way which makes it, under that law, the equivalent of a co-ownership authorised contractual scheme as defined in subsection (8), provided that, apart from this section, no charge to tax is capable of arising to the scheme under this Part.

8 Subject to any regulations under subsection (9)— “ co-ownership authorised contractual scheme ” means a co-ownership scheme which is authorised for the purposes of FSMA 2000 by an authorisation order in force under section 261D(1) of that Act; “ co-ownership scheme ” has the same meaning as in FSMA 2000 (see section 235A of that Act); “ Reserved Investor Fund (Contractual Scheme) ” has the meaning given by section 20 of the Finance (No.2) Act 2024.

9 The Treasury may by regulations provide that a scheme of a description specified in the regulations is to be treated as not being a co-ownership authorised contractual scheme or a Reserved Investor Fund (Contractual Scheme) for the purposes of this Part. Any such regulations may contain such supplementary and transitional provisions as appear to the Treasury to be necessary or expedient.

10 A co-ownership ... contractual scheme is not to be treated as a company for the purposes of Schedule 7 (group relief, reconstruction relief or acquisition relief).

11 In relation to a land transaction in respect of which a co-ownership ... contractual scheme is treated as the purchaser by virtue of this section, references to the purchaser in the following provisions are to be read as references to the operator of the scheme—

a sections 76, 80, 81, 81A and 108(2) and Schedule 10 (provisions about land transaction returns and further returns, enquiries, assessments and related matters),

b section 85 (liability for tax),

and c section 90 (application to defer payment in case of contingent or unascertained consideration).

12 In this section— “ collective investment scheme ” has the meaning given by section 235 of FSMA 2000; “ FSMA 2000 ” means the Financial Services and Markets Act 2000; “operator”—

in relation to a co-ownership ... contractual scheme constituted under the law of the United Kingdom, has the meaning given by section 237(2) of FSMA 2000, and in relation to a collective investment scheme treated as a co-ownership authorised contractual scheme by virtue of subsection (7) (equivalent EEA schemes), means the corporate body responsible for the management of the scheme (however described); “ participant ” is to be read in accordance with section 235 of FSMA 2000.