IFM13335 - Offshore Funds: participants in offshore funds: participants within the charge to income tax: reporting funds that are constant NAV funds

A “constant NAV fund” (see Regulation 118) is an offshore fund whose net asset value (expressed in the currency in which units are issued) does not fluctuate by more than an insignificant amount throughout the fund’s existence, as a result of the nature of the fund’s assets, and the frequency with which the fund distributes its income. The distributions are treated as income of the investors for the year of assessment in which they are made.