The definition of an offshore fund is limited to ‘mutual funds’ which take one of three forms and which are resident in, or based in, a territory outside the United Kingdom.

The meaning of the term ‘mutual fund’ is given by section 356 TIOPA 2010, and is explained in more detail at OFM05000 onwards. Those pages discuss each type of mutual fund in more detail, but broadly the definition is applied to a company, trust or any other vehicle or arrangement that meets the following characteristics -

it is not UK tax resident;

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