IFM01000 | Introduction to Investment Funds Manual

Scope

This manual includes HMRC's direct tax guidance on the following types of investment fund:

• Authorised investment funds (authorised unit trusts and open-ended investment companies) authorised by the Financial Conduct Authority;

• Authorised contractual schemes authorised by the Financial Conduct Authority;

• Unauthorised unit trusts;

• Offshore funds;

• Investment trusts; and

• Real estate investment trusts.

It also provides guidance on the tax position of investors in these funds, and on non-resident capital gains for collective investment vehicles.

Where appropriate, this manual also provides signposts to other HMRC manuals on VAT, stamp taxes, international issues, etc which affect funds.

Objective of UK taxation

The tax rules for UK funds aim to put the investor broadly in the same position as if they had invested in the fund’s assets directly (rather than investing in the fund).

HMRC administration

Tax administration policy for this legislation is owned by the Financial Products and Services team in HMRC’s Business, Assets and International Directorate, who also own this manual.

The policy team works closely with the Collective Investment Schemes Centre (CISC). CISC is an HMRC operational team which is the first port of call for funds-related enquiries from HRMC staff as well as from funds, fund administrators and professional advisers. CISC also collates reports from reporting offshore funds and administers other funds-specific processes. Please see the CISC webpage on gov.uk for details of the services they provide and contact details.

Amendments to existing guidance

The manual replaces older guidance contained in:

• Corporation Tax Manual,

• Offshore Funds Manual,

• Savings and Investment Manual,

• Guidance on Real Estate Investment Trusts, and

• Draft and temporary guidance on specific issues.