Regs. 46A, 46B and cross-heading inserted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Authorised Investment Funds (Tax) (Amendment) Regulations 2013 (S.I. 2013/1772), regs. 1(1), 2(2)
Words in reg. 46A(6) substituted (with effect in accordance with reg. 1(2)(b) of the amending S.I.) by The Authorised Investment Funds (Tax) (Amendment) (No. 2) Regulations 2013 (S.I. 2013/2994), regs. 1(1), 5
An annual payment made to a participant which meets the conditions in paragraphs (2) to (6) is not a qualifying annual payment for the purposes of Chapter 6 of Part 15 of ITA 2007 (deduction from annual payments and royalties).
The payment must be charged to income tax under Chapter 7 of Part 5 of ITTOIA 2005 (annual payments not otherwise charged).
The payment must be made in respect of the participant’s interest in an authorised investment fund other than a Property AIF.
The payment and the amount of the payment must be directly or indirectly referable to, and must not be more than, any management fees paid to the manager of the authorised investment fund in respect of the participant’s interest in the fund.
Any management fees must not exceed an amount representing a reasonable commercial amount in all the circumstances.
At the time the payment is made, the person making the payment must have reasonable grounds for believing
the participant is not resident in the United Kingdom, or
the payment is made in respect a class of units in relation to which of the offshore marketing condition in regulation 33A is met.