The Child Trust Funds (Amendment No. 3) Regulations 2005

• Citation: S.I. 2005/3349
• Sections: 7

Section 1 Citation and commencement

These Regulations may be cited as the Child Trust Funds (Amendment No. 3) Regulations 2005 and shall come into force on 27th December 2005.

Section 2 Amendment of the Child Trust Funds Regulations 2004

The Child Trust Funds Regulations 2004 are amended as follows.

Section 3 Amendment of the Child Trust Funds Regulations 2004

In regulation 2(1)(b)—

(a) for the definition of “the Board” substitute—

“the Board” means the Commissioners for Her Majesty’s Revenue and Customs;

(b) insert the following definitions at the appropriate places—

“the New Collective Investment Schemes Sourcebook” means the Sourcebook of that name made by the Financial Services Authority under the Financial Services and Markets Act 2000 ;

“non-UCITS retail scheme”—

has the meaning in the New Collective Investment Schemes Sourcebook (that is, a scheme to which, or to whose authorised fund manager and depositary, Sections 5.1, 5.4 and 5.6 of that Sourcebook apply),

includes a “recognised scheme” by virtue of section 270 or 272 of the Financial Services and Markets Act 2000, which would fall within paragraph (a) of this definition if it were an authorised fund, and

includes a sub-fund of an umbrella which the terms of the scheme identify as a sub-fund which would fall within paragraph (a) or (b) of this definition if it were itself an authorised fund or a recognised scheme.

In this definition, expressions defined in the Glossary forming part of the Financial Services Authority Handbook have those defined meanings;

“qualifying units in or shares of a non-UCITS retail scheme” means that—

the instrument constituting the scheme secures that redemption of the units or shares in question shall take place no less frequently than bi-monthly (see Rule 6.2.16(6) of the New Collective Investment Schemes Sourcebook omitting the words “Except where (7) applies, and”, read with Rule 6.3.4(1), whether or not those Rules apply to the scheme), and

a provision for suspension of dealings in exceptional conditions in accordance with Rule 7.2 of that Sourcebook (or any foreign procedure which is a direct foreign equivalent of that Rule) shall not be treated as a provision contrary to paragraph (a) of this definition;

Section 4 Amendment of the Child Trust Funds Regulations 2004

In regulation 6(4) for “, the account” to the end substitute—

the account provider shall select the type or types to be used for the purposes of this regulation (subject to sub-paragraph (b)),

any type selected must be offered to the general public at the time of opening a Revenue allocated account of that type, and

if more than one type has been selected, the account to be opened shall be chosen by the account provider in rotation between the selected types of accounts.

Section 5 Amendment of the Child Trust Funds Regulations 2004

In regulation 12(2) add at the end—

(o) arrangements falling within section 47 of the Finance Act 2005 (alternative finance arrangements) under which the person referred to in that section as Y is a financial institution;

(p) arrangements falling within section 49 of that Act;

(q) qualifying units in or shares of a non-UCITS retail scheme.

Section 6 Amendment of the Child Trust Funds Regulations 2004

In regulation 14(2)(d) renumber paragraph (ia) as (iia).

Section 7 Amendment of the Child Trust Funds Regulations 2004

In regulation 24 (exemption from tax)—

(a) in sub-paragraph (a), after paragraph (i) insert—

(ia) in respect of alternative finance return or profit share return paid by a financial institution (within the meanings in Chapter 5 of Part 2 of the Finance Act 2005);

(b) in sub-paragraph (c)(iii) for “section 333 of the Taxes Act” substitute “Chapter 3 of Part 6 of ITTOIA 2005”;

(c) in sub-paragraph (f) for “section 660B of the Taxes Act” substitute “section 629 of ITTOIA 2005”.