Taxes Consolidation Act 1997 Schedule 19 paragraph 1

Requirements as to distributions

Paragraph 1 of Schedule 19 sets out the conditions under which an offshore fund is treated as pursuing a "full distribution policy" for the purposes of Chapter 2 of Part 27 (offshore funds).

• To qualify as a distributing fund, an offshore fund must distribute at least 85% of its income and Irish equivalent profits during or within 6 months of the end of each account period, in a form taxable under Case III of Schedule D.
• A fund with no income and no Irish equivalent profits for an account period is treated as satisfying the distribution test, even if no distribution is made; however, a fund that does not make up accounts for a period automatically fails the test.
• Where account periods and accounting periods do not coincide, income and distributions are time-apportioned on a daily basis; excess distributions may be carried back to earlier account periods to satisfy the test for those periods.
• Where local law restricts distributions because of an excess of losses over profits, the amount unavailable for distribution is excluded when calculating the fund's income for the period.

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