Controlled investment and controlled activity meaning

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Private Client England & Wales glossary A Abatement When, after settling the deceased’s funeral costs, debts and liabilities, the remaining estate cannot satisfy all legacies in full, the gifts are reduced accordingly, unless the Will shows a different intention. In a solvent estate, the order for reduction appears in Part II of Schedule 1 to the Administration of Estates Act 1925. Refer to Practice Note: Payment of legacies. Accruals basis Where income is taxed on an accruals basis, it is attributed to a given tax year by reference to the number of days within that year during which the activity giving rise to the liability accrued. See Practice Note: What is the basis of income tax?. Accumulation and maintenance (A&M) trust A form of non‑interest in possession trust designed to benefit children and young people up to 25, which received favourable inheritance tax treatment between 1975 and 2006. See Practice Note: Accumulation and maintenance trusts—IHT [Archived]. Accredited Legal Representative (ALR) ...

Scope of this Practice Note This Practice Note summarises the provisions set out in section 21, together with associated sections, of the Financial Services and Markets Act 2000 (FSMA 2000); the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, SI 2005/1529 (FPO); and the Financial Services and Markets Act 2000 (Promotion of Collective Investment Schemes) (Exemptions) Order 2001, SI 2001/1060 (the Promotion of CIS Order). These instruments, as amended periodically and read collectively, comprise the UK’s financial promotion regime, and the Note also draws on relevant materials issued by the Financial Conduct Authority (FCA). What is the financial promotion regime? The expression ‘financial promotion’ does not appear within the text of the Financial Services and Markets Act 2000 (FSMA 2000) other than in the heading to section 21. Pursuant to FSMA 2000, s 21(1), a person (A) must not, in the course of business, communicate an invitation or an inducement—communication including causing a communication to be made—to participate in investment activity, subject to the circumstances...

The qualifying asset holding company (QAHC) regime The QAHC is an optional, tax‑favoured framework for specified holding companies—known as asset holding companies (AHCs)—used within collective and institutional investment structures to own investment assets. Its primary emphasis is on so‑called alternative fund structures, which the OECD labels non‑CIV funds. These are typically vehicles that: are closed‑ended are non‑retail hold portfolios spanning private market strategies—principally credit, private equity and real estate—ie less liquid, higher‑risk assets Launched on 1 April 2022, the QAHC regime aims to encourage funds to situate their AHCs in the UK where that is otherwise sensible (for example, where the investment manager is UK‑based). Historically, even with the UK’s strong concentration of deal specialists and asset management expertise, Luxembourg has been the preferred domicile for asset holding companies in such structures, reflecting its wide treaty network and suite of tax reliefs. Ireland has also presented an attractive option. Considering how to overcome tax‑related impediments to establishing AHCs in the UK...