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HMRC internal manual

Offshore Funds Manual

Definition of an offshore fund: Overview: Transitional arrangements

Regulation 30

Holdings acquired before 1 December 2009 in arrangements that

  • fall within the new definition of an offshore fund but which,
  • on the date that the investor acquired them, were not an offshore fund within the previous meaning at Chapter 5 of Part 17 Income and Corporation Taxes Act (‘ICTA’) 1988, or
  • were within the definition but did not constitute a ‘material interest’ (s759 ICTA 1988 before 1/12/2009)

are subject to preserved treatment, that is they are not treated as relevant holdings in an offshore fund.

The same treatment may apply to holdings acquired after 1 December 2009 but only where they were acquired under a written, legally binding agreement entered into by the investor prior to 30 April 2009 and the terms of the agreement are not varied on or after that date. If such an agreement was conditional, then all of the conditions must have been satisfied before 30 April 2009 in order for this provision to apply.

See OFM32000 onwards for full details of the transitional provisions contained within the offshore funds regulations.