IFM07400 - IFM07400 Investors in tax elected funds (TEFs): TEF distributions (non-dividend) - investors within the charge to corporation tax (CT): distributions

When companies and other specified investors (see IFM02800 onwards) have received interest distributions without deduction of tax the amount is treated as a loan relationship credit by the investor.

IFM03324 outlines rules which require companies and other bodies within the charge to CT to treat interest distributions from holdings in certain funds as loan relationships. These rules apply to holdings in TEFs in the same way as they do to other authorised funds (see regulation 69Z64 of SI 2006/964).