Income Tax Act 2007 section 564U

Arrangements not unit trust scheme or offshore fund

Section 564U clarifies that alternative finance investment bond arrangements are excluded from being classified as either a unit trust scheme or an offshore fund for income tax purposes.

• Investment bond arrangements cannot be treated as a unit trust scheme
• Investment bond arrangements cannot be treated as an offshore fund for income tax purposes
• This prevents alternative finance products from falling under collective investment scheme rules
• The exclusion ensures these arrangements are taxed under their own dedicated rules rather than under the unit trust or offshore fund regimes