Reporting Fund Status

RNS Number : 3044P

Off-Plan Fund Limited (The)

14 July 2010

 

AIM: OPF

14 July 2010

THE OFF-PLAN FUND LIMITED

(the "Company" or "Fund")

Reporting Fund Status

As stated in the Fund's interim results announcement on 29 June 2010, the Fund had applied to HM Revenue & Customs ("HMRC") to be a reporting fund under the UK offshore funds legislation.  The Company is pleased to announce that it has received formal notification from HMRC that it will be entered into the reporting fund regime with effect from 1 October 2009.

The UK offshore funds regime and the definition of "offshore fund" were changed with effect on and from 1 December 2009. The Fund was not an offshore fund for the purposes of this legislation under the old definition. However, it fell to be an offshore fund under the new definition. The effect of the new legislation and new definition would have meant that any Members who are resident or ordinarily resident in the UK and who acquired their shares in the Fund on or after 1 December 2009, would be subject to UK income tax (or corporation tax on income) on any gain they realised on a disposal of shares unless the Fund was a reporting fund.

The effect of now obtaining reporting fund status is that any gains arising to Members resident or ordinarily resident in the UK on a sale, redemption or other disposal of shares will be taxed as capital gains rather than as income. Members who are resident or ordinarily resident in the UK will be subject to UK income tax (or corporation tax on income) on their share of the net income of the Fund whether or not it is distributed.  Given its current activities, the Fund does not expect to generate net income in future and, therefore, shareholders should not expect to bear any additional income tax liability with respect to their holdings in the Fund.

List of Contacts:

Development Capital Management

Andy Gardiner

Tom Pridmore

020 7355 7600

Merchant Securities Limited

(Nominated Adviser)

Bidhi Bhoma/Simon Clements

020 7628 2200

 

END

 

 

MSCGGUUGMUPUGRW