The Companies Act 2006 (Amendment of Part 23) (Investment Companies) Regulations 2012

• Citation: S.I. 2012/952
• Sections: 4

Section 1 Citation and commencement

These Regulations may be cited as the Companies Act 2006 (Amendment of Part 23) (Investment Companies) Regulations 2012 and come into force on 6th April 2012.

Section 2 Amendments to Part 23 of the Companies Act 2006

(1) Part 23 of the Companies Act 2006 is amended as follows.

(2) In section 832(5) (conditions investment company must meet in order to make a distribution under section 832)—

(a) for paragraph (a) substitute the following—

(a) the company’s shares must be shares admitted to trading on a regulated market;

(b) omit paragraph (b)(i) (together with the “or” following it); and

(c) in paragraph (b)(ii) omit “or any capital profits (realised or unrealised)”.

(3) In section 832(6) (definitions applying for the purpose of conditions which investment company must meet in order to make a distribution under section 832) omit paragraph (a) (together with the “and” following it).

(4) In section 833(1)(b) (meaning of “investment company”), for “requirements” substitute “requirement”.

(5) In section 833(2) (requirements to be complied with after giving notice to registrar of intention to carry on business as an investment company)—

(a) for “Those requirements are” substitute “The requirement is”;

(b) in paragraph (a), for “mainly in securities” substitute “in shares, land or other assets”; and

(c) omit paragraphs (b), (c) and (d).

(6) Omit section 833(3).

(7) Omit sections 834 and 835.

Section 3 Transitional provision

(1) The repeal of section 833(2)(d) of the Companies Act 2006 (requirement not to retain more than 15% of income in each accounting reference period) applies only in relation to accounting reference periods of an existing investment company beginning on or after 6th April 2012.

(2) In this regulation, “existing investment company” means a company that gave notice under section 833(1) of that Act (notice to registrar of intention to carry on business as an investment company) before 6th April 2012.

Section 4 Consequential repeals

The following are repealed—

(a) paragraph 11(4) of Schedule 22 to the Finance Act 2009 ;

(b) paragraph 489 of Schedule 1 to the Corporation Tax Act 2010 .