Taxation (International and Other Provisions) Act 2010 section 363A

Residence of undertakings for collective investment in transferable securities and alternative investment funds

Section 363A determines the UK tax residence status of certain foreign collective investment funds (UCITS and AIFs) that might otherwise be treated as UK resident, for example because they have a UK-based fund manager.

• Foreign-authorised or foreign-registered UCITS and AIFs are treated as not UK resident for income tax, corporation tax and capital gains tax purposes, even if they would otherwise be considered UK resident (e.g. due to having a UK fund manager)
• Certain types of entity are excluded from this treatment, including UK-resident unit trust schemes, companies incorporated in the UK, investment trusts and UK REITs — these "excluded entities" remain subject to normal UK residence rules
• The Treasury has the power to amend the list of excluded entities by regulations, adding new categories, removing existing ones, or varying descriptions
• Where capital gains tax legislation treats a UCITS or AIF as if it were a company (for example, a unit trust scheme), that deemed company is also treated as not UK resident for capital gains tax purposes