AIFs: Property authorised investment funds (Property AIFs): breaches of conditions: information requirements
When a Property AIF breaches any of the conditions of the Property AIF regime, as set out earlier in this guidance (CTM48872 to CTM48875), then the regulations impose a duty on the Property AIF to take certain actions, as detailed below.
Notifying breaches of conditions of entry into the Property AIF regime (regulation69Z26 SI 2006/964)
Where a Property AIF fails to meet conditions of the regime, (see CTM48810 onwards) its manager must provide the following information to HMRC:
- the date on which the condition first ceased to be met and the date (if any) on which the condition was satisfied again,
- details of the condition that was breached,
- the nature of the breach (how the condition was breached), and
- what (if anything) the manager has done to prevent the breach recurring.
The above information must be provided as soon as reasonably practicable following the manager becoming aware of such a failure in respect of the Property AIF.
Notifying distributions made to or in respect of holders of excessive rights(regulation 69Z27 SI 2006/964)
Where the manager of a Property AIF becomes aware that it has made distributions to, or in respect of a holder of excessive rights (see CTM48817 –the corporate ownership conditions), the manager must provide the following information to HMRC as soon as reasonably practical:
- the name of every person to whom, or in respect of whom, such distribution was made,
- the address of every such person,
- the amount or value of the distribution,
- particulars of those persons’ interests in the OEIC, including details of the percentage of rights to the net asset value of the fund represented by the shares held by those persons,
- the steps the manager took to prevent the acquisition, by the holder of excessive rights, of an excessive holding, and
- the steps the manager has taken, or is taking, to ensure that there is no longer a holder of excessive rights.
Where should the required information be sent to?
The information required under regulation 69Z26 and 27 SI 2006/964 should be submitted to:
Authorised Investment Funds Centre
Local Compliance Eastern England
5 Young Street
Notice to provide information to HMRC (regulation 69Z28 SI 2006/964)
If HMRC believes that a Property AIF has:
- not met or may not meet any of the conditions of the regime, or
- that a breach of a condition has not been rectified,
then HMRC will issue a notice to the manager of the Property AIF concerned requiring the manager to provide any of the information referred to above. The manager will then have a period of 28 days, beginning from the day on which the notice is served, to comply with the notice.