IFM08140 - Authorised Contractual Schemes (ACS): Tax

ACS and tax returns

An ACS is not liable to direct taxes because it does not have its own legal personality, but it must comply with the following reporting requirements.

Co-ownership ACS (CoACS)

A CoACS is not required to submit a UK tax return, but it is required to provide certain tax information to investors and to HMRC. The rules are set out in section 41 of the Finance Act (No 2) 2017 and The Co-ownership Authorised Contractual Schemes (Tax) Regulations 2017 (SI 2017/1209). Those rules are explained in detail at IFM08220 and IFM08230.

Partnership ACS

As a limited partnership, a Partnership ACS must submit a UK partnership tax return in the same way as any other partnership.

Double Taxation Agreements

The fiscal transparency of both types of ACS fund means they are generally not persons for the purposes of double taxation agreements between the UK and other jurisdictions. Instead, the availability of double taxation convention reliefs will reflect the convention between the investor’s jurisdiction of residence and the jurisdiction where the income or gain arises. See IFM08410 for more details.