SCHEDULES
SCHEDULE 26Offshore funds
Transitional provision
17
1
This paragraph applies for the purposes of determining whether an offshore fund that is—
a
a part of an umbrella fund (which is treated as an offshore fund under section 756B of the Taxes Act 1988), or
b
a class of interest in a part of an umbrella fund (which is treated as an offshore fund under section 756C of that Act),
may be certified as a distributing fund under Chapter 5 of Part 17 of that Act in respect of an account period ending on or after the day on which this Act is passed and on or before 31st December 2005.
2
Where this paragraph applies—
a
subsection (3) of section 760 of the Taxes Act 1988 shall not have effect, and
b
the fund shall not be certified as a distributing fund in respect of a period if at any time in that period—
i
more than 5 per cent by value of the assets of that offshore fund consists of interests in other offshore funds, and
ii
more than 5 per cent by value of the assets of the umbrella fund consists of interests in other offshore funds.
3
Where this paragraph applies, references to subsection (3) of section 760 of the Taxes Act 1988 shall have effect as references to sub-paragraph (2)(b) above.
4
Words used in Chapter 5 of Part 17 of the Taxes Act 1988 have the same meaning in this paragraph as they have in that Chapter.