739HA Investment undertakings: amalgamations with offshore funds.

(1) In this section—

“material interest” shall be construed in accordance with section 743;

“offshore fund” has the meaning assigned to it by section 743;

“offshore state” has the same meaning as in section 747B(1);

“scheme of amalgamation” means an arrangement whereby the assets of an investment undertaking are transferred to an offshore fund of an offshore state in exchange for the issue by the offshore fund of an offshore state of a material interest in that offshore fund to each of the unit holders in the investment undertaking, in proportion to the value of the units held by each unit holder, and as a result of which the value of those units becomes negligible.

(2) The cancellation of units in an investment undertaking arising from an exchange in relation to a scheme of amalgamation shall not be a chargeable event and the amount invested by a unit holder for, and the date of, the acquisition of a material interest in an offshore fund of an offshore state under that scheme shall for the purposes of Chapter 4 be the amount invested by the unit holder for, and the date of, the acquisition of those units in the investment undertaking.