Tax elected funds (TEFs): application process and effects of entry to the TEF regime: contents of the application
There is no prescribed application form for the TEF regime but regulation 69Z51 SI2006/964 sets out the information that must be contained in a TEF application, which must be made in writing.
The Collective Investment Schemes Centre, who process the applications, have designed an application form that can be used (also available on the collective web pages) to assist HMRC in processing the application more efficiently.
Application from an existing fund
An application from an existing fund must contain the following information:
- notification of the start of the first accounting period from which the fund seeks to apply the TEF regime (specified accounting period);
- a statement from the fund manager confirming that each of the conditions of entry (as explained in CTM48913 to CTM48916) have been or will be met for the specified period;
- the instrument constituting the fund (trust deed or instrument of incorporation) and the fund’s prospectus;
- a copy of the application to the Financial Services Authority (FSA) for approval for any changes in the instrument constituting the fund and its prospectus, including copies of any documents that accompanied the application to the FSA;
- whether the AIF has been within the TEF regime during a previous accounting period, the period it was in the TEF regime (that is dates of entry and cessation) and confirmation that a termination notice has never been issued by HMRC; and
- a statement from the manager confirming that either shareholder or unit holder consent for the application is not required or where it is, that shareholder or unit holder consent has been given and the date that consent was given.
Application from a future fund
An application from a future fund must contain the following information:
- notification of the earliest date by which it is expected the future fund will be established and authorised by the FSA, as the TEF regime will apply from that date;
- a statement by the proposed manager confirming that each of the conditions of entry (as explained in CTM48913 to CTM48916) for the TEF regime are reasonably expected to be met by the proposed fund throughout its first accounting period;
- a copy of the application to the FSA for authorisation to be an AIF, including copies of any documents which accompanied the application to the FSA; and
- the proposed instrument constituting the fund (trust deed or instrument of incorporation) and the fund’s proposed prospectus (including any supplements to the proposed prospectus).
Where should applications be sent to?
Applications and queries regarding the application process not covered by the guidance should be sent to:
HM Revenue & Customs
Collective Investment Schemes Centre
5 Young Street
Tel: 0114 2969361