IFM06560 - Tax elected funds (TEFs): breaches of conditions: information requirements

If HMRC believes that a TEF does not meet any of the conditions of the regime or has not rectified a breach of a condition then they may request that any of the information below be provided. If an information notice is issued to the manager of fund, the manager must respond within 28 days. (See regulation 69Z69 of SI2006/964.)

What information may be requested under an information notice?

An information notice may seek any of the following information:

• the date on which a condition first ceased to be met;
• the date on which the AIF became aware of the breach;
• details of the condition that was breached;
• the reason for the breach;
• the steps the AIF proposes to take to rectify the breach;
• the date when the breach was rectified or by which the AIF proposes to rectify it;
• details of any previous breaches of conditions, stating which condition was breached, the date of the breach and when it was rectified.

Consequences of not complying with an information notice

If the manager of the fund does not provide the information requested to HMRC within 28 days then a termination notice will be issued by HMRC. HMRC and the fund manager can agree longer period for the response if required.