Taxation (International and Other Provisions) Act 2010 section 354

Power to make regulations about tax treatment of participants

Section 354 gives the Treasury broad powers to make regulations governing how participants in offshore funds are treated for income tax, corporation tax and capital gains tax purposes.

• The Treasury may make regulations covering the income tax, corporation tax and capital gains tax treatment of anyone who participates in an offshore fund, including funds that form part of umbrella arrangements or that have multiple classes of interest.
• Regulations may allow offshore funds (or their trustees or officers) to make elections about participants' tax treatment, and may impose requirements to supply information to HMRC and to participants, prepare accounts and keep records.
• The regulations may give HMRC discretionary powers, refer to external standards or documents, amend or repeal existing legislation, make different provision for different circumstances, and include transitional and savings provisions.
• Regulations may take effect from the tax year or accounting period that is current at the date the regulations are made, meaning they can potentially apply to a period already in progress.