Taxation (International and Other Provisions) Act 2010 section Sch 9 paras 33–34

Restriction on regulation-making power under section 354

Section Schedule 9, paragraphs 33 and 34 restrict the scope of regulations made under section 354 concerning the tax treatment of participants in certain offshore funds, protecting rights acquired before specified dates from being adversely affected by new rules.

• Regulations under section 354 cannot change the tax treatment of a person who acquired rights in an "affected offshore fund" before 1 December 2009, or under a binding written agreement entered into before 30 April 2009.
• An "affected offshore fund" is one that qualifies as an offshore fund under the new definition in section 354 but did not qualify as an offshore fund under the old definition in Chapter 5 of Part 17 of ICTA at the time the rights were acquired.
• The protection for pre-existing rights only applies where any conditions in the agreement were satisfied before 30 April 2009 and the agreement has not been varied on or after that date.
• Despite these restrictions, regulations may still allow a person to elect into the new rules voluntarily, and may include provisions that do not increase the person's tax liability in respect of those protected rights.