|
|
Amalgamations of investment undertakings and offshore funds.
|
33.— Part 27 of the Principal Act is amended—
|
|
| |
(a) in Chapter 1A by inserting the following after section 739H:
|
|
| |
“Investment undertakings: amalgamations with offshore funds.
|
|
| |
739HA.— (1) In this section—
|
|
| |
‘material interest’ shall 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);
|
|
| |
‘scheme of amalgamation’ means an arrangement whereby the assets of an investment undertaking are transferred to an offshore fund of an offshore state in exchange for the issue by the offshore fund of an offshore state of a material interest in that offshore fund to each of the unit holders in the investment undertaking, in proportion to the value of the units held by each unit holder, and as a result of which the value of those units becomes negligible.
|
|
| |
(2) The cancellation of units in an investment undertaking arising from an exchange in relation to a scheme of amalgamation shall not be a chargeable event and the amount invested by a unit holder for, and the date of, the acquisition of a material interest in an offshore fund of an offshore state under that scheme shall for the purposes of Chapter 4 be the amount invested by the unit holder for, and the date of, the acquisition of those units in the investment undertaking.”,
|
|
| |
and
|
|
| |
(b) in Chapter 4 by inserting the following after section 747F:
|
|
| |
“Offshore funds: amalgamations with investment undertakings.
|
|
| |
747FA.— (1) In this section—
|
|
| |
‘investment undertaking’ has the same meaning as in section 739B(1);
|
|
| |
‘scheme of amalgamation’ means an arrangement whereby the assets of an offshore fund are transferred to an investment undertaking in exchange for the issue by the investment undertaking of units to each of the persons who have a material interest in the offshore fund, in proportion to the value of that interest, and as a result of which the value of that interest becomes negligible.
|
|
| |
(2) Where, in connection with a scheme of amalgamation, a person disposes of a material interest in an offshore fund and receives, in place of that interest, units in an investment undertaking, the disposal of the interest in the offshore fund shall not give rise to a gain but the units acquired in the investment undertaking under that scheme shall for the purposes of Chapter 1A be treated as acquired at the same time and at the same cost as the interest in the offshore fund.”.
|
