CTM48115 - Authorised investment funds: collective investment schemes: general: authorised investment funds
Authorised investment funds (AIFs) are collective investment schemes authorised and regulated by the Financial Services Authority (FSA) under the terms of the Financial Services and Markets Act 2000 (FSMA00).
The rules dealing with the constitution and investment powers of AIFs are set out in the ‘COLL’ handbook published by the FSA. This can be found at the FSA website at www.fsa.gov.uk.
All AIFs (whichever legal form they take - see AIFs - legal forms, below) fall into one of three categories defined by the FSA.
- UCITS funds
- Non-UCITS retail funds
- Qualified Investor Schemes (QIS)
Nearly all AIFs are taxed in the same way and CTM48200 to CTM48760 gives details of the tax rules which apply to most AIF schemes. However, for the tax treatment of Property AIFs refer to CTM48800 to CTM48882.
In general the tax rules applying to investors (called ‘participants’ in the regulations) in each type of AIF are the same (see CTM48500 onwards for CT payers and CTM48550 onwards for IT payers) but there are exceptions for certain investors in a QIS. Details of the class of investors affected and the special tax rules that apply to them can be found at CTM48700 onwards.
AIFs can have two different legal forms:
Note that both the FSA handbook and the tax rules use ‘units’ (in an AIF) to refer to either units in an AUT or shares in an OEIC as the case may be.