Unit Trusts for Pension Schemes and Charities

Certain unit trusts, commonly known as "exempt unit trusts", are recognised under Section 731(5) of the Taxes Consolidation Act (TCA) 1997. They are not authorised by the Central Bank under the Unit Trusts Act 1990 as they are not open to the public generally. Investment in them is confined to pension schemes and charities and they are specifically excluded from being an investment undertaking under both the old or "net" (Section 738 TCA 1997) and new or "gross roll-up" (Section 739B TCA 1997) investment undertaking regimes.

The Tax and Duty Manual Part 27.01.01 (Unit Trusts for Pension Schemes and Charities) which deals with exempt unit trusts has been amended in two respects -

1. To reflect a reporting requirement that was introduced in Finance Act 2010 and effective from the 2010 year of assessment;
2. To explain that, as a result of the implementation of the Alternative Investment Fund Managers Directive (AIFMD) in July 2013, some exempt unit trusts will require authorisation by the Central Bank and consequently will no longer meet the requirements of Section 731(5)(a), TCA 1997.

22 September 2015