Taxation (International and Other Provisions) Act 2010 section 360

Treatment of umbrella arrangements

Section 360 explains how umbrella arrangements (such as umbrella funds with multiple sub-funds) are treated for the purposes of the offshore funds rules in Part 8 of the Act.

• Where umbrella arrangements exist, each separate part (commonly known as a "sub-fund") is treated as a standalone arrangement in its own right.
• The overarching umbrella arrangements themselves are disregarded — meaning the umbrella structure as a whole does not itself constitute an offshore fund or mutual fund.
• The definition of what constitutes umbrella arrangements is found in section 363 of the Act.
• The treatment of each sub-fund as a separate arrangement is subject to further rules in section 361, which deals with arrangements comprising more than one class of interest.