Taxation of Chargeable Gains Act 1992 section 103A

Application of Act to certain offshore funds

Section 103A ensures that investors' interests in certain offshore funds are treated as chargeable assets for capital gains tax purposes, even where those interests would not otherwise qualify as such.

• Where an offshore fund is not already structured as a company or unit trust, capital gains tax applies as though the fund were a company and investors' rights were shares in that company.
• The section applies only to offshore funds that are neither constituted as companies nor structured as unit trust schemes — those are already covered by other provisions.
• A "participant" in the fund is defined by reference to section 362(1) of the Taxation (International and Other Provisions) Act 2010.
• The provision mirrors section 99 of the same Act, which performs a similar function for unit trust schemes.