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What is an Authorised Contractual Scheme (ACS)?

An ACS is a form of collective investment scheme. It is essentially a pool of assets held by a depositary and managed on behalf of a number of investors in accordance with contractual arrangements agreed between the parties.

»Ê¹ÚÌåÓýapp scheme has an operator (or manager) who is responsible for the operation of the scheme, including decisions about the investment of investorsâ€� funds in accordance with the contractual arrangements.

»Ê¹ÚÌåÓýapp depositary is responsible for holding and safeguarding the assets that are part of the scheme. »Ê¹ÚÌåÓýapp depositary will acquire and dispose of assets on behalf of investors in the ACS on the instructions of the operator.

An ACS must be authorised by the Financial Conduct Authority. »Ê¹ÚÌåÓýapp operator and depositary must also be FCA-authorised persons.

»Ê¹ÚÌåÓýappre are two types of ACS: a Co-ownership ACS and a Partnership ACS - see IFM08130.

Tax

An ACS is not a legal person and is not within the charge to direct taxes. An ACS is “transparent� for tax purposes - each investor is taxable on their own share of income as it arises at the rate of tax applicable to them in accordance with their tax status.

Investors are also liable to tax on gains � see IFM08130.

»Ê¹ÚÌåÓýapp operator of the ACS will account for any stamp taxes (IFM08420) payable on acquisitions of assets on behalf of the investors.

»Ê¹ÚÌåÓýapp supply of services of managing an ACS is exempt from VAT (see IFM08430).