739M Anti-avoidance: multiple funds

(1) In this Chapter—

“personal portfolio IREF” means an IREF under the terms of which some or all of the IREF assets or IREF business may be, or was, selected or influenced by—

(a) the unit holder,

(b) a person acting on behalf of the unit holder,

(c) a person connected with the unit holder,

(d) a person connected with a person acting on behalf of the unit holder,

(e) the unit holder and a person connected with the unit holder, or

(f) a person acting on behalf of both the unit holder and a person connected with the unit holder.

(2) For the purposes of subsection (1) and without prejudice to the application of that subsection, the terms of an IREF shall be treated as permitting the selection referred to in that subsection where—

(a) the terms of that IREF or any other agreement between any person referred to in that subsection and that IREF—

(i) allow the exercise of an option by any person referred to in that subsection to make the selection referred to in that subsection,

(ii) gives that IREF discretion to offer any person referred to in that subsection the right to make the selection referred to in that subsection, or

(iii) allow any of the persons referred to in that subsection the right to request, subject to the agreement of that IREF, a change in those terms such that the selection referred to in that subsection may be made by any of those persons,

or

(b) the unit holder or any person connected with the unit holder has or had the option of requiring that IREF to appoint an investment advisor (regardless how such a person is described) in relation to the selection of IREF assets or business, or the conduct of the IREF business.

(3) A ^[2]>scheme, undertaking^<[2][2]>pension scheme, undertaking^<[2] or company, as referred to in paragraphs (a) to (c) or (f) of the definition of “specified person” in section 739K, shall be a specified person where—

(a) subject to section 739N, the IREF is a personal portfolio IREF in respect of the unit holder, or

(b)(i) that scheme, undertaking or company, as the case may be, would, if it was an IREF and if the holding of the units in the IREF was part of its IREF business, be regarded as a personal portfolio IREF in respect of any of its unit holders, and

(ii) it would be reasonable to consider that the investment in the IREF by the scheme, undertaking or company was part of a scheme or arrangement the main purpose, or one of the main purposes, of which was the avoidance of tax under this Chapter.