IFM09255 | Eligibility criteria: Restriction condition: Exempt investor condition - Regulation 14

A co-ownership scheme meets the exempt investor condition at any given time if all of its participants are exempt from UK Capital Gains Tax or UK Corporation Tax (as appropriate) on gains arising from the disposal of their units in the scheme, other than solely by reason of being non-UK resident.

There is an exception from this general rule where a participant holds all their units in the scheme solely in their capacity as the operator of the scheme, for example where they temporarily hold redeemed units with a view to sale of those units to another eligible investor.

No account is to be taken of the possibility of a charge to Corporation Tax on income in respect of a gain accruing on a disposal of a unit by an insurance company, or a friendly society, where throughout the time that the company or society holds the unit, it carries on life assurance business and the unit is an asset which, applying the rules in section 138 of Finance Act 2012, is wholly matched to a liability of that business that is not basic life and general annuity business (BLAGAB), or the company or society carries on long-term business, none of which is BLAGAB and the unit is an asset held for the purposes of that business.

An exempt investor RIF is not restricted in terms of the types of assets it can hold, unlike in the case of RIFs relying on either the UK property rich condition (IFM09250) or the non-UK property assets condition (IFM09245).