Limited partnerships, which are transparent for income and capital gains tax purposes, are outside of the offshore funds definition at section S355 TIOPA 2010 as investors are subject to tax on income and gains as they arise.

Other types of arrangements that are transparent for income purposes but not transparent for capital gains purposes (Section 99 and 103A TCGA – see OFM07000 onwards) such as, for example, so called ‘Baker’ unit trusts (following the case of Archer-Shee v. Baker, 11TC749) or certain foreign contractual arrangements (such as Fonds Commun de Placement (‘FCPs’)) fall within the definition of an offshore fund.

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