Genuine Diversity of Ownership (GDO): advance clearance procedure: Introduction
Authorised investment funds: regulation 9B of SI 2006/964; offshore funds: regulations 77-79 of SI 2009/3001
A manager or proposed manager of a fund can apply in writing for a clearance from HMRC that the fund meets the genuine diversity of ownership condition (GDO) (IFM17100). The manager or proposed manager is advised to use the GDO advance clearance application form to make this clearance request. The form provides a ‘checklist’ which it is hoped will, when followed, reduce the chance of an application being refused.
The pro forma application form (CISC5) is available on the gov.uk website.
If a fund plainly meets the GDO, for example where:
- a fund has or is intended to have a wide range of unconnected investors, or
- a professional adviser can confirm compliance with the condition,
then it will not need clearance.