D7.332 Definition of an investment trust
For accounting periods beginning on or after 1 January 2012, the definition of an investment trust was simplified. The stated intention behind these changes is to remove unnecessary restrictions on a company's commercial activities, provide increased certainty for investors and provide a more flexible framework that prevents unintended tax advantages being gained through investing in an investment trust company while ensuring a proportionate approach for minor inadvertent breaches.
Conditions for approval by HMRC
For accounting periods beginning on or after 1 January 20121 a company is an investment trust if:
- Ìý
•ÌýÌýÌýÌý it meets conditions A to C (the 'eligibility conditions' — see below)
- Ìý
•ÌýÌýÌýÌý any conditions specified in regulations, and
- Ìý
•ÌýÌýÌýÌý is approved by HMRC
The eligibility conditions are as follows2:
- Ìý
(A)ÌýÌýÌýÌý all or substantially all, of the business of the company is investing in shares, land or other assets
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Web page updated on 17 Mar 2025 16:57