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AIFs and EUUTs

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The Authorised Investment Funds (Tax) (Amendment) Regulations, SI 2015/485, remove an existing restriction which prevents authorised investment funds (AIFs) from making interest distributions where the fund receives property income. With effect from 26 March 2015, such AIFs will be able to make an interest distribution, but will be subject to corporation tax on any of their property income, with no amounts being deductible against that income.

The Unauthorised Unit Trusts (Tax) (Amendment) Regulations, SI 2015/463, revise the rules in relation to basis periods of exempt unauthorised unit trusts (EUUTs). With effect from 6 April 2015, the basis period for a tax year will begin immediately after the end of the basis period for the previous tax year. The regulations also revise the basis periods for the first and second tax years of an EUUT. These changes address concerns that income may be taxed twice on the cessation of an EUUT and ensure that no amount of income falls out of charge to tax.

Issue: 1254
Categories: News , Corporate taxes