Tax elected funds (TEFs): application process and effects of entry to the TEF regime: introduction
This section covers the process for entry into the TEF regime.
- Key points about the application process are set out in CTM48922. The application needs to be made in writing to HMRC by the manager of an existing authorised investment fund (AIF) or proposed manager of a future fund, confirming to HMRC that all the conditions of entry apply. A TEF can voluntarily leave the TEF regime at anytime but is unable to re-join for 6 years following the cessation.
- An application from an existing authorised investment fund should be received at least 28 days before the beginning of the specified accounting period or for a proposed fund, at least 42 days before the fund is expected to be authorised by the FSA. See CTM48923. This page also explains the approval process and how minor errors and omissions will be dealt with by HMRC within the approval process.
- The contents of an application are set out CTM48924. There is no prescribed application form but HMRC has designed an application form that can be used to apply for the TEF regime.
- HMRC will issue a refusal notice if the application is incorrect or incomplete or if HMRC is not satisfied that all the conditions of entry have been or will be met (CTM48925).
- The effects of entry to the TEF regime are set out in CTM48926.