Taxes Consolidation Act 1997 section 739HA

Investment undertakings: amalgamations with offshore funds

Section 739HA provides for tax-neutral treatment when units in an investment undertaking are exchanged for a material interest in an offshore fund as part of a cross-border scheme of amalgamation.

• A scheme of amalgamation involves transferring an investment undertaking's assets to an offshore fund in exchange for proportionate material interests issued to each unit holder.
• The cancellation of units arising from such an exchange is not a chargeable event.
• The acquisition date and cost of the new material interest are deemed to be those of the original units.
• This provision implements the UCITS IV Directive framework for cross-border fund mergers.