739HA Investment undertakings: amalgamations with offshore funds

Summary

This section was inserted by section 33, Finance Act 2012 and is consequent on the implementation of the UCITS IV Directive, which provides for the cross-border merger of two or more UCITS funds.

Details

Definitions

(1) This subsection sets out how specific terms used in this new section are to be interpreted. “material interest” is to be construed in accordance with section 743; “offshore fund” has the meaning assigned to it by section 743; “offshore state” has the same meaning as in section 747B(1). The subsection also provides a definition for “scheme of amalgamation”.

(2) In the context of a scheme of amalgamation, the cancellation of units in an investment undertaking, as a result of the transfer of its assets to an offshore fund shall not be a chargeable event. On the occurrence of future chargeable events, the date and cost of the acquisition of the material interest will be the same date and cost as the original units in the investment undertaking.

Relevant Date: Finance Act 2021