Finance Act 2025
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Amendment to section 835AVB of Principal Act (collective investment scheme) | ||
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40. (1) Section 835AVB of the Principal Act is amended— | ||
(a) in subsection (1)— | ||
(i) by the insertion of the following definitions: | ||
“ ‘EEA Agreement’ means the Agreement on the European Economic Area signed at Oporto on 2 May 1992, as adjusted by all subsequent amendments to that Agreement; | ||
‘EEA state’ means a state which is a contracting party to the EEA Agreement; | ||
‘foreign tax’, in relation to a relevant territory, means a tax which— | ||
(a) corresponds to corporation tax in the State, | ||
(b) generally applies to income, profits and gains arising to a company that is resident for the purposes of tax in that territory, and | ||
(c) is imposed at a nominal rate greater than zero per cent; | ||
‘investment limited partnership’ means a partnership authorised in accordance with the Investment Limited Partnerships Act 1994 ; | ||
‘listed territory’ has the same meaning as it has in section 835YA; | ||
‘relevant company’, in relation to an investment limited partnership, means a company— | ||
(a) which is a direct or indirect asset of the investment limited partnership, | ||
(b) in which the partners of the investment limited partnership are beneficially entitled, directly or indirectly, to not less than 95 per cent of its ordinary share capital, | ||
(c) whose business consists of the holding, directly or indirectly, of a diversified portfolio of assets, and | ||
(d) which is— | ||
(i) resident in the State, or | ||
(ii) by virtue of the law of a relevant territory, is— | ||
(I) resident for the purposes of foreign tax in the relevant territory, and | ||
(II) not generally exempt from foreign tax; | ||
‘relevant territory’ means— | ||
(a) an EEA state, other than the State, | ||
(b) not being such an EEA state, a territory with the government of which arrangements having the force of law by virtue of section 826(1) have been made, or | ||
(c) not being a territory referred to in paragraph (a) or (b), a territory with the government of which arrangements have been made which on completion of the procedures set out in section 826(1) will have the force of law, | ||
but does not include a listed territory;”, | ||
and | ||
(ii) in paragraph (b) of the definition of “relevant investment undertaking”, by the deletion of “, within the meaning of section 739J”, | ||
(b) in subsection (4)(a), by the substitution of “20 per cent” for “10 per cent”, and | ||
(c) by the insertion of the following subsection after subsection (4): | ||
“(4A) In the case of an investment limited partnership, for the purposes of subsection (4)(a)— | ||
(a) a relevant company shall not be considered to be an issuer of securities to the investment limited partnership, and | ||
(b) an investment limited partnership shall be deemed to hold directly any securities held by a relevant company.”. | ||
(2) Subsection (1) shall apply for the year of assessment 2026 and each subsequent year. |