Authorised Investment Funds (AIFs) - Draft regulations

Following on from the Finance (No.2) Act 2005, an explanatory memorandum (PDF 19K), draft Regulations (with explanatory notes) (PDF 263K) and a Regulatory Impact Assessment (PDF 51K) were laid before the House of Commons today - 13th February 2006. These regulations are subject to approval by the House of Commons.

The draft regulations consolidate and update the detailed arrangements for the taxation of AIFs, provide a rule that applies different tax treatment to certain investors in a Qualified Investor Scheme (QIS), provide for UK resident non-taxpayers to receive interest distributions without deduction of tax, and incorporate and update an existing extra statutory concession into legislation.

Subject to parliamentary approval, the Regulations will come into force on 1 April 2006 (with a date of 6 April 2007 for the introduction of gross payments to UK residents with no tax liability).

These draft Regulations, as laid before the House of Commons, have been revised in the light of responses received to the drafts published on 14 December 2005. A summary of these responses is now available.

History

Previously HMRC had published, on 14 December 2005, draft regulations (PDF 243K) for comment and a partial regulatory impact assessment (PDF 46K).