IFM10400 | Tax treatment of a mixed unauthorised unit trust (MUUT)

An unauthorised unit trust which throughout the period 24 May 2012 to 5 April 2014 had at least one eligible investor (see IFM10220) and one unit holder who is not an eligible investor is a MUUT. MUUTs continue to be taxed under the rules that applied for unauthorised unit trusts prior to the introduction of the new rules. This transitional status was introduced to allow MUUTs time to restructure.

Where a MUUT no longer has any ‘eligible investors’ it ceases to be a MUUT and becomes a NEUUT subject to transitional provisions outlined in IFM10330.