Taxation (International and Other Provisions) Act 2010 section 359

Power to make regulations about exceptions to definition of "mutual fund"

Section 359 gives the Treasury the power to make regulations that change or remove the exceptions to the definition of a "mutual fund", or to create new exceptions so that certain arrangements fall outside the definition entirely.

• The Treasury can amend or repeal any of the existing exceptions to the mutual fund definition set out in sections 357 and 358, using regulations.
• The Treasury can also make regulations providing that certain arrangements are not a mutual fund, either in specified circumstances or if they match a specified description.
• Any regulations made under this section can take effect from the tax year or accounting period that is current on the date the regulations are made, meaning they can apply retrospectively within that period.
• Regulations that amend or repeal the existing exceptions in sections 357 and 358 require prior approval by the House of Commons through the affirmative resolution procedure, providing a higher level of parliamentary oversight.