IFM14450 - Continuing obligations

An investment trust is required to notify HMRC if it makes a substantive change to its published investment policy. Regulation 23 of SI 2011/2999 requires the company to provide HMRC with a copy of the revised investment policy before the date by which it is required to file its corporation tax self- assessment return for the accounting period in which the investment strategy was revised.

The company must continue to meet the eligibility Condition A at section 1158(2) if it is still to be treated as an investment trust (see IFM14424) and it would be helpful in such circumstances if the investment trust could provide details of how it considers that it does so. If it does not, or if HMRC has further questions, then the matter may be the subject of an enquiry into the return in question.

An investment trust is required to notify HMRC if it has breached any of the eligibility conditions (see IFM14420 onwards) or approval requirements (see IFM14430 onwards).

Regulation 24 of SI 2011/2999 provides that the company must notify HMRC as soon as it becomes aware that any of the eligibility conditions or requirements of the regulations have been breached and must specify the steps that have been taken, or are to be taken, to correct the breach. If the company is unsure whether a breach has occurred then it should seek advice from its own advisers or HMRC.

Breaches of any of the eligibility conditions will automatically cause the company to be treated as not having been approved from the start of the accounting period in which the first breach occurred (see IFM14560).

If any of the requirements of the regulations are breached then the treatment of the company depends on whether the breach is treated as ‘minor’ or ‘serious’ – see IFM14530 onwards.