Taxation of Chargeable Gains Act 1992 section 99

Application of Act to unit trust schemes

Section 99 explains how the chargeable gains legislation applies to unit trust schemes by treating them as if they were companies, with unit holders treated as shareholders.

• For capital gains tax purposes, a unit trust scheme is treated as a company and unit holders' rights are treated as shares in that company; an authorised unit trust is treated as UK resident
• This deemed company treatment does not bring unit trust schemes within the charge to corporation tax on chargeable gains, and it does not apply to transparent offshore funds
• Key definitions are provided: "unit trust scheme" takes its meaning from the Financial Services and Markets Act 2000, "unit holder" means a person entitled to a share of the trust's investments, and "authorised unit trust" means one with an order under section 243 of that Act in force during all or part of the accounting period
• The Treasury has the power to make regulations excluding specified types of scheme from being treated as unit trust schemes for capital gains purposes, including any necessary supplementary or transitional provisions