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HMRC internal manual

Capital Gains Manual

Funds in Court: England Wales and Northern Ireland: Common Investment Funds

TCGA92/S100 (3)

Section 42 of the Administration of Justice Act 1982 gives the courts discretion to invest funds in court in one of the common investment funds. These are referred to in TCGA92/S61 and TCGA92/S100 as ‘court investment funds’. These common investment funds are comparable to unit trusts. The value of a share in one of them is determined by the total value at the relevant time of the underlying securities. The only person entitled to hold shares in such funds is the Accountant General of the Supreme Court of Judicature who holds them on behalf of the individual beneficiaries. Dividends on the shares are payable at six monthly intervals.

Gains on disposals on or after 6 April 1980 are not chargeable gains of the fund.

TCGA92/S61 (2)

For administrative convenience, the Accountant General has the power to reallocate between suitors the shares which he holds in a common investment fund. Funds received for a new suitor may be used to pay off another to whom money is due. The necessary transfer of shares may be made by a book entry. TCGA92/S61(3) provides that such reallocations of shares are to be treated for capital gains purposes as an acquisition on behalf of one suitor and a disposal on behalf of the other.