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HMRC internal manual

Company Taxation Manual

HM Revenue & Customs
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Authorised investment funds: collective investment schemes: general: open-ended investment companies

Meaning of open-ended investment company - section 468A ICTA 1988

An open-ended investment company (OEIC) is a body corporate which owns and manages investments (of various types) in order to give its members the benefit of spreading investment risk and the benefit of the management of the funds by or on behalf of the company.

The full definition is given in section 236 Financial Services and Markets Act 2000. This definition applies for tax purposes by virtue of ICTA88/S468A (2), but only to companies incorporated in the UK.

OEICs incorporated in the UK must also be authorised by the Financial Conduct Authority (FCA) and are a type of authorised investment fund (AIF) (CTM48115). The tax rules that apply are those for AIFs.

In order to be incorporated in the UK as an OEIC the company must be incorporated by virtue of regulations made under section 262 Financial Services and Markets Act 2000. All such companies in the UK have the letters ICVC (investment company with variable capital) at the end of the company name. An OEIC incorporated in the UK is regulated by the Financial Services Authority (FSA) which has issued regulations covering the constitution and management of OEICs. For further details see the FCA handbook at .

OEICs that are not incorporated in the UK are treated as offshore funds for UK tax purposes (CTM48135).