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HMRC internal manual

Company Taxation Manual

Authorised investment funds: collective investment schemes: general: authorised unit trusts

Meaning of authorised unit trust - section 468(6) ICTA 1988 provides that:

“authorised unit trust” means, as respects an accounting period, a unit trust scheme in the case of which an order under section 243 of The Financial Services And Markets Act 2000 is in force during the whole or part of that accounting period.

A unit trust is accordingly authorised when the Financial Conduct Authority (FCA) makes an order under section 243. An authorised unit trust (AUT) must conform to the FCA regulations for authorised investment funds (AIFs) as set out in the FCA ‘COLL’ handbook.

ICTA88/S468 provides that the Tax Acts shall apply as if the trustees of an AUT were a company resident in the UK and as if the rights of unit holders were shares in that company. The trustees of an AUT are, therefore, within the charge to CT.

AUTs are a form of authorised investment fund (CTM48115) and the tax rules are those for authorised investment funds. The term ‘authorised investment fund’ is defined in tax regulations (SI2006/964 Regulation 3) and also in the FCA ‘COLL’ handbook () to include both AUTs and open-ended investment companies.

For unit trusts that are not AUTs please see CTM48130.