Update-Revenue news-30 aug

Offshore funds

 HMRC has amended an article in Tax Bulletin 73 'Amendment to FA 2004 — investment restrictions'. The change comes after the bullet point:

'Section 760(3)(c) which prevented an offshore fund owning more than 10% of the issued share capital of any one company'.

The subsequent paragraphs originally read:

'The limit in TA 1988 s 760(3)(a) remains — an offshore fund may not hold more than 5% of its assets in other offshore funds. This is subject to TA 1988 Sch 27 para 6 which allows the fund to disregard for this purpose any holdings in an offshore fund which itself could qualify for distributor status.
'However in establishing its status that second fund may not have regard to Sch 27 para 6 in relation to any offshore funds in which it has investments. Therefore if offshore fund A invests more than 5%...