What does 'unit trust scheme' mean under Income Tax Act 2007 section 1007?

Under section 1007, 'unit trust scheme' has the same meaning as in section 237 of the Financial Services and Markets Act 2000 (FISMA 2000). This provides a single, consistent definition across all Income Tax Acts, ensuring the same collective investment arrangements are treated uniformly wherever the term appears in income tax legislation.

Can the Treasury exclude certain UK-resident unit trust schemes from being treated as unauthorised unit trusts?

Yes. The Treasury may make regulations providing that UK-resident unit trust schemes of a specified description are not treated as unauthorised unit trusts under section 989. This power allows the Treasury to carve out particular scheme types so they are not caught by the unauthorised unit trust rules, even if they otherwise meet the definition.

What additional provisions can Treasury regulations under section 1007 include?

Regulations made under section 1007 may include incidental, supplemental, consequential, and transitional provisions as well as savings. This gives the Treasury flexibility to ensure the regulations operate smoothly without creating unintended gaps or adverse consequences in the application of the unauthorised unit trust rules.

Does section 1007 apply to approved charitable investments under section 558?

No. Section 1007 expressly does not apply for the purposes of section 558, which deals with approved charitable investments. This means the definition of 'unit trust scheme' and the Treasury's regulatory power under section 1007 have no bearing on the treatment of charitable investment arrangements under that separate provision.

Income Tax Act 2007 section 1007

Meaning of "unit trust scheme"

Section 1007 defines what a "unit trust scheme" means for income tax purposes and gives the Treasury power to exclude certain UK-resident schemes from being treated as unauthorised unit trusts.

The term "unit trust scheme" takes its meaning from section 237 of the Financial Services and Markets Act 2000 (FISMA 2000).
The Treasury may make regulations to provide that a UK-resident unit trust scheme of a specified description is not treated as an "unauthorised unit trust" as defined in section 989.
Such regulations may include incidental, supplemental, consequential, and transitional provisions and savings.
This definition does not apply for the purposes of section 558, which deals with approved charitable investments.

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