Section 827 — Income Tax Act 2007: Meaning of “investment manager” and “investment transaction”

Meaning of “investment manager” and “investment transaction” 827 1 In this Chapter “ investment manager ” means a person who provides investment management services (which may include or comprise the provision of investment advice) .

2 An “ investment transaction ” means any transaction other than a transaction with an excluded subject matter.

3 The following are excluded subject matters—

a land in the United Kingdom, and b any commodity or other physical asset.

4 But a transaction is to be treated as not having an excluded subject matter if—

a it is a derivative contract whose subject matter is a commodity but which does not result in the physical delivery of the commodity, or b it is a derivative contract whose subject matter is an excluded subject matter only because it operates by reference to a qualifying index, provided that index is not maintained by a person who is connected to any of the parties to the transaction.

5 For the purposes of subsection (4) a “ qualifying index ” means an index relating to an excluded subject matter that—

a is publicly available, and b is an index of a substantial number of assets.