Section 103G | Exchange of units for those in another collective investment scheme ^F1

(1)This section applies in the following cases where units in a collective investment scheme (“collective investment scheme B”) are issued to a person in exchange for units in another collective investment scheme (“collective investment scheme A”).^F1

(2)The cases are—^F1

Case 1Where units in collective investment scheme B are issued in exchange for units as the result of a general offer—

(a)made to participants in collective investment scheme A or any class of them, and

(b)made in the first instance on a condition such that if it were satisfied the property subject to collective investment scheme B would include units in collective investment scheme A giving rights to more than 50% of the capital, and more than 50% of the income, of collective investment scheme A.

Case 2Where—

(a)under an arrangement, participants in collective investment scheme A exchange units in that scheme for units of substantially the same value in collective investment scheme B, and

(b)in consequence of the exchanges under the arrangement, 85% or more of the property subject to collective investment scheme B is constituted by units in collective investment scheme A.

(3)Where this section applies, sections 127 to 131 (share reorganisations etc) apply with the necessary adaptations as if collective investment scheme A and collective investment scheme B were the same company and the exchange were a reorganisation of its share capital.^F1

(4)This section has effect subject to section 103K (anti-avoidance).^F1F2