Tax Transparent Funds

HMRC have issued draft guidance on the taxation of Tax Transparent Funds (TTF).  Page 10 of the guidance deals with loan relationships and confirms that capital movements on loan relationships will be taxed on a look through basis.

What the guidance does not address is the interaction of the loan relationship look through basis and TCGA 103D that treats a holding in collective ownership TTFs (CTTF)  as an asset for CGT purposes, supplanting the look through basis for CGT.  

It is not immediately apparent what prevents capital movements on loan relationships being taxed twice, once under the loan relationship regime on a look through basis and again under the CGT rules where the holding in the CTTF is treated as the asset.   In my opinion CTA 2009 464 prevents the possibility of double taxation by giving priority to the loan relationship amount but it's a bit surprising HMRC have not addressed.  I intend to raise with HMRC and I'll post again on this if I hear back.