Corporation Tax Act 2010 section 1158

Meaning of "investment trust"

Section 1158 defines what qualifies as an "investment trust" for corporation tax purposes, setting out the conditions a company must satisfy throughout an accounting period and the requirement for HMRC approval.

• The company's business must consist wholly, or substantially wholly, of investing its funds in shares, land or other assets to spread investment risk and benefit its members from the results of fund management.
• The company's ordinary shares (of each class, if more than one) must be admitted to trading on a recognised regulated market — being a UK, EU or Gibraltar regulated market as defined under Regulation (EU) No 600/2014.
• The company must not be a venture capital trust or a UK REIT, and must be approved for the accounting period by HMRC.
• The Treasury has power to make regulations treating conditions as met in specified circumstances, and to amend the share-trading and regulated market requirements, subject to parliamentary procedure.