Authorised investment funds (AIFs): taxation of funds: trading or investment - ‘investment transactions’ - carbon emission trading products
SI2006/964 Regulation 14N - carbon emission trading products
Regulation 14N provides that any transaction in a carbon emission trading product is and investment transaction for the purposes of regulation 14E.
Carbon emission trading products for the purposes of regulation 14N are either:
- Community tradable emissions allowances; or
- Transferable units issued pursuant to the Kyoto Protocol.
Community tradable emissions allowances are transferable allowances relating to the making of emissions of greenhouse gases, allocated under a system for implementing any European Community obligation of the UK in relation to such emissions.
Transferable units issued pursuant to the Kyoto Protocol include assigned amount units, certified emission reductions, emission reduction units and removal units.
To qualify for admission under regulation 14N, the transaction must not otherwise fall within any of the categories listed in regulation 14F(1)(a)-(f).