IFM03110 - Investors in authorised investment funds (AIFs): general

Investors in AIFs may be within the charge to either corporation tax (CT) or income tax (IT). The broad intention of the tax rules for AIFs is that investors should be in broadly the same tax position as if they had invested directly in the underlying investment assets of the AIF. Taxable income is subject to tax within the AIF. The tax amount paid by the fund may be adjusted by investors within the charge to CT or higher and additional rate taxpayers within the charge to IT.

Investors in AIFs may receive dividend distributions or interest distributions (or both from property authorised investment funds or tax elected funds – see IFM04000 and IFM06000).

The tax treatment of investors generally is set out from IFM03300.

The tax treatment of income on accumulation units is discussed in IFM03120.

The tax treatment of trail commission is discussed in IFM03200.