Regulation 43 | Special rules for certain existing holdings

(1)This regulation applies if—

(a)a person acquired rights (the “protected rights”) in an offshore fund—

(i)before 1st December 2009, or

(ii)in accordance with paragraph (2),

(b)immediately before 1st December 2009 those rights did not constitute a material interest in an offshore fund within the meaning of that expression given by section 759 of ICTA , and

(c)on or after 1st December 2009 the person acquires additional rights in the offshore fund (the “non-protected rights”).

(2)Rights are acquired in accordance with this paragraph if—

(a)the rights are acquired by the participant in accordance with a legally enforceable agreement in writing that was entered into by the participant before 30th April 2009,

(b)in the case of an agreement which was conditional, the conditions are met before that date, and

(c)the agreement is not varied on or after that date.

(3)For the purposes of tax in respect of chargeable gains—

(a)section 104 of TCGA 1992 (share pooling: general interpretative provisions) applies as if the protected rights were assets of a different class from the non-protected rights, and

(b)all the protected rights must be treated as disposed of before any of the non-protected rights may be so treated.