F1SCHEDULE 5AAAUK property rich collective investment vehicles etc
PART 4Exemption
Deemed disposal if election ceases to have effect
22
(1)
This paragraph applies if at any time an election which has been made under paragraph 12 in respect of a qualifying fund or qualifying company ceases to have effect.
(2)
In the case of an election made in respect of a qualifying fund, each participant in the relevant fund is deemed for the purposes of this Act—
(a)
to have sold its units in the relevant fund immediately before that time, and
(b)
to have immediately reacquired those rights and interests,
at their market value immediately before that time.
(3)
In the case of an election made in respect of a qualifying company, each participant in the relevant fund is deemed for the purposes of this Act—
(a)
to have sold its rights and interests in F2the relevant entity immediately before that time, and
(b)
to have immediately reacquired those rights and interests,
at their market value immediately before that time.
F3(4)
In this paragraph “the relevant entity” has the same meaning as in paragraph 21.