Taxation of Chargeable Gains Act 1992 Schedule 5AAA paragraphs 49–49A

Elections for transparency under paragraph 8

Paragraphs 49 and 49A provide transitional rules extending the deadline for offshore collective investment vehicles to elect for transparency treatment (being taxed as if they were partnerships), and set out how that election interacts with the 6 April 2019 commencement date depending on when the vehicle was formed.

• Offshore collective investment vehicles formed before 6 April 2019 were given until 1 October 2020 to make a transparency election, with the election applying to disposals from 6 April 2019 onwards.
• For anyone who was already a participant on 6 April 2019, making the election does not itself trigger a disposal of their units — so no chargeable gain arises simply from electing.
• When a participant who held units on 6 April 2019 later disposes of them, the capital gains position is calculated as though the transparency election had been in force since the vehicle was first set up.
• Offshore collective investment vehicles formed on or after 6 April 2019 were allowed to elect by the later of the standard deadline or 1 October 2020, giving newly formed vehicles adequate time to decide.