18.—(1) Paragraph (2) applies where the total amount [F1available for income allocation is allocated] for distribution as yearly interest.
(2) The Tax Acts shall have effect as if the total amount were payments of yearly interest made on the distribution date by the authorised investment fund to the participants in proportion to their rights.
[F2(2A) For the purposes of Part 10 (Corporate Interest Restriction) of TIOPA 2010, an interest distribution is treated as not being a tax-interest expense amount of the authorised investment fund.]
(3) In these Regulations an “interest distribution” means a payment of yearly interest treated as made by virtue of paragraph (2) (including a payment of interest treated as made to a participant who is not chargeable to income tax).
(4) This regulation is subject to—
(a)regulation 19 (the qualifying investments test), and
(b)regulation 23 (treatment of de minimis amounts).
Textual Amendments
F1Words in reg. 18(1) substituted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Authorised Investment Funds (Tax) (Amendment) Regulations 2010 (S.I. 2010/294), regs. 1(1), 9 (with reg. 24)
F2Reg. 18(2A) inserted (29.12.2017) by The Corporate Interest Restriction (Consequential Amendments) Regulations 2017 (S.I. 2017/1227), regs. 1, 2(2)