Corporation Tax Act 2009 section 495

Qualifying holdings

Section 495 defines what counts as a "qualifying holding" in an open-ended investment company (OEIC), unit trust scheme, or offshore fund for the purposes of the qualifying investments test.

• A holding in an OEIC, unit trust scheme, or offshore fund is a qualifying holding if, at any time during the relevant accounting period, the fund itself fails the qualifying investments test
• For an OEIC, a holding means shares in the company, or rights in a separate pool where part of an umbrella company is treated as an OEIC
• For a unit trust scheme, a holding means an entitlement to a share in the investments of the scheme; for an offshore fund, it means either shares in the constituting company or an entitlement to a share in the fund's investments
• The relevant accounting period is the accounting period of the company holding the investment, not the accounting period of the OEIC, unit trust, or offshore fund itself