Section 99A — Taxation of Chargeable Gains Act 1992: Treatment of umbrella schemes

Treatment of umbrella schemes 99A 1 In this section an “ umbrella scheme ” means a relevant collective investment scheme —

a which provides arrangements for separate pooling of the contributions of the participants and the profits or income out of which payments are to be made to them, and b under which the participants are entitled to exchange rights in one pool for rights in another, and any reference to a part of an umbrella scheme is a reference to such of the arrangements as relate to a separate pool.

2 For the purposes of this Act (except subsection (1) and section 103C)—

a each of the parts of an umbrella scheme shall itself be regarded as a collective investment scheme of the same form as the umbrella scheme as a whole, and b the umbrella scheme as a whole shall not be regarded as a collective investment scheme of that form or as any other form of collective investment scheme, and the participants in the umbrella scheme are to be treated accordingly. 2A Subsection (2)—

a does not prevent gains or losses accruing to an umbrella scheme which is a unit trust scheme (other than an authorised unit trust) being regarded as gains or losses accruing to the umbrella scheme as a whole, and b does not apply for the purposes of section 100(2). 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4 Nothing in subsection (2) shall prevent—

a gains accruing to an umbrella scheme being regarded as gains accruing to an authorised unit trust for the purposes of section 100(1) (exemption for authorised unit trusts etc );

b a transfer of business to an umbrella scheme being regarded as a transfer to a unit trust scheme for the purposes of section 139(4) (exclusion of transfers to authorised unit trusts etc );

c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5 For the purposes of subsection (1), “arrangements” includes arrangements provided in a company’s instrument of incorporation.

6 In this section, “relevant collective investment scheme” means a collective investment scheme which is—

a an authorised contractual scheme which is a co-ownership scheme, aa a Reserved Investor Fund (Contractual Scheme),

b a unit trust scheme, or c an offshore fund.