PART 5COMPLIANCE

Interest distributions F2and TEF distributions (non-dividend)

Annotations:
Amendments (Textual)

Notification of interest distributions F3and TEF distributions (non-dividend) made without deduction of tax71

1

If, during a tax year, an authorised investment fund has made interest distributions F1and TEF distributions (non-dividend) without deduction of tax, the legal owner must give notice of that fact to the Commissioners within 14 days of the end of that tax year.

2

Notice given under paragraph (1)—

a

must be in writing, and

b

has effect for the tax year in which it is given and for subsequent tax years until the notice is withdrawn.

3

An authorised investment fund that fails to comply with paragraph (1) is liable to a penalty not exceeding £3,000 determined in accordance with section 100 of TMA 1970 M1.

4

Sections 100A, 100B, 102, 103(4) and 118(2) of TMA 1970 M2 apply to a penalty determined in accordance with paragraph (3).

Information about interest distributions F4and TEF distributions (non-dividend) made without deduction of tax72

1

The Commissioners may by notice require a person specified in paragraph (2) to provide them with such information as they may reasonably require for the purpose of determining whether interest distributions F5and TEF distributions (non-dividend) were properly made by that person without deduction of tax.

2

The persons specified are—

a

an open-ended investment company;

b

the authorised corporate director of an open-ended investment company;

c

a trustee of an authorised unit trust.

3

The information to be provided may include copies of any relevant books, documents or other records.

4

The information must be provided within such time (not being less than 14 days) as may be specified in the notice.

Inspection of records73

1

A person specified in regulation 72(2) must, whenever required to do so, make available for inspection by an officer of the Commissioners authorised for that purpose, at such time as that officer may reasonably require, all such copies of books, documents or other records in their possession or under their control as may be required by the Commissioners under regulation 72.

2

Every qualifying certificate supplied to a legal owner under Chapter 2 of Part 4 (participants chargeable to income tax) must be preserved by the legal owner in such manner as may be approved by the Commissioners for two years after it has ceased to be otherwise required under the provisions of these Regulations.

Use of information74

1

Information obtained by the Commissioners under regulation 72 or 73—

a

must not be used for the purpose of ascertaining the tax liability (if any) of any person other than the persons specified in paragraph (2), and

b

must otherwise be used only for the purposes of these Regulations.

2

The persons specified in this paragraph are—

a

the open-ended investment company in question;

b

the trustees of the authorised unit trust in question;

c

a participant who is beneficially entitled to an interest distribution F6or a TEF distribution (non-dividend) made without deduction of tax to whom the information obtained relates;

d

where the whole of an interest distribution F6or a TEF distribution (non-dividend) made to or received under a trust without deduction of tax is, or falls to be treated as, or under any provision of the Tax Acts is deemed to be, the income of a person other than the trustees of that trust, that person in so far as the information obtained relates to him; and

e

where an interest distribution F6or a TEF distribution (non-dividend) is made to or received under a trust without deduction of tax and sub-paragraph (d) does not apply, the trustees of that trust and any beneficiary of the trust to whom the information obtained relates.

3

In paragraph (2)(e) “any beneficiary of the trust” means—

a

any person who is, or will or may become, entitled to any income of the trust, whether in the form of income or not, and

b

any person to whom any such income may be paid, or for whose benefit any such income may be applied, whether in the form of income or not, in the exercise of a discretion by the trustees of the trust.

4

Paragraph (1) does not prevent any disclosure of information authorised under section 182(5) of the Finance Act 1989 M3.