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HMRC internal manual

Investment Funds Manual

Offshore Funds: Reporting Funds: breaches of reporting fund conditions: consequences of breaches: serious breaches

Regulation 114 of SI 2009/3001

When a serious breach arises under regulations 110 to 113 (see IFM12722 to IFM12724 and IFM12726) or as a consequence of a number of minor breaches under regulation 109 (see IFM12732), and HMRC give notice of the serious breach to the fund in question, then the fund will be treated as a non-reporting fund for the reporting period in which HMRC gives the notice and for all subsequent periods. This is subject to two variations, where -

  • the fund, or its managers, fail to provide information requested by HMRC as a result of a notice under regulation 107 and the fund has not appealed against the notice - the fund will be treated as a non-reporting fund for the period in which the notice under regulation 107 was given and for all subsequent periods; or
  • a notice under regulation 107 was issued and the fund has appealed against the notice - where the tribunal then varies the notice but the fund or its managers fail to provide the information required by the varied notice and do not appeal against the decision of the tribunal - the fund will be treated as a non-reporting fund for the period in which the notice as varied was given and for all subsequent periods.