Taxes Consolidation Act 1997 Schedule 19 paragraph 7

Attribution of qualifying fund assets to the primary fund

Schedule 19, paragraph 7 provides that where a primary fund has used a qualifying fund arrangement (under paragraph 6) to meet the distributing fund test, the primary fund must also count its proportionate share of investments held by the qualifying fund when applying certain asset and shareholding thresholds.

• Where a primary fund and a qualifying fund both hold an interest in the same offshore fund or company, the primary fund is attributed a proportionate share of the qualifying fund's holding as an additional asset.
• This attribution applies when testing whether the primary fund has more than 5% of its assets in an offshore fund, more than 10% of its assets in a single company, or more than 10% of a single company's issued share capital.
• These thresholds are relevant to determining whether anything in section 744(3) prevents the primary fund from being certified as a distributing fund.
• The proportionate share to be attributed to the primary fund is calculated in accordance with paragraph 9 of Schedule 19.