Taxation (International and Other Provisions) Act 2010 section 355

Meaning of "offshore fund"

Section 355 defines what constitutes an "offshore fund" for the purposes of the regulation-making power in section 354 concerning the tax treatment of participants in such funds.

• An offshore fund is a mutual fund that takes one of three forms: a non-UK resident body corporate, a trust with non-UK resident trustees, or a co-ownership arrangement governed by the law of a territory outside the United Kingdom.
• Partnerships carrying on a trade or business are specifically excluded from the definition, even if they might otherwise fall within the co-ownership category.
• The term "co-ownership" is given a broad meaning and is not limited to its technical legal definition under UK law — instead, it takes its meaning from the law of the territory where the arrangements have effect.
• Investment bond arrangements that qualify under certain provisions of TCGA 1992, ITA 2007 and CTA 2009 are also excluded from being treated as offshore funds.