Section 371BE | Companies which are managers of offshore funds etc ^F1

(1)A company (“C”) is not a chargeable company for the purposes of step 4 in section 371BC(1) if—

(a)the CFC is an offshore fund (as defined in section 355),

(b)the genuine diversity of ownership condition set out in regulation 75 of the Offshore Funds (Tax) Regulations 2009 (S.I. 2009/3001) is met in relation to the fund,

(c)C meets the fund management condition, and

(d)apart from this section, a sum of no more than £500,000 would be charged on C as a chargeable company at step 5 in section 371BC(1).

(2)In applying regulation 75 of the 2009 Regulations for the purposes of subsection (1)(b), the reference in paragraph (1) to the period of account is to be read as a reference to the accounting period.

(3)C meets the fund management condition if at all times during the accounting period when C has relevant interests in the offshore fund—

(a)the assets of the offshore fund are managed by C or a person connected with C,

(b)C or the person connected with C receives out of those assets fees for managing those assets, and

(c)C holds its relevant interests only or mainly for the purpose of attracting participants (as defined in section 362) to the fund who are not connected with C.

(4)If the accounting period is less than 12 months, the amount specified in subsection (1)(d) is to be reduced proportionately.