Today Her Majesty’s Treasury announced proposals to offer legislative certainty that UK funds will be treated as investing and not “trading”.
IMA says this removes the small ‘cliff edge’ possibility of a fund losing its capital gains tax exemption in the event of a transaction being viewed as trading.
The Government also offered a feedback statement on tax-elected funds and proposals for the reform of the offshore funds regime. These proposals are part of a package that already includes a new tax-efficient property fund regime and a workable regime for qualified investor schemes.
IMA welcomes today’s proposals and believe they confirm the Government’s commitment to improving the competitive position of UK funds. It continues to work with officials on an efficient and operationally practical way of ensuring that investors receive income with the appropriate tax treatment .
IMA director of authorised funds and taxation Julie Patterson says: “Today’s proposals are a landmark in our discussions with the government on reforms to improve the competitive position of UK funds and to provide certainty for investors.
“Together with changes secured last year and further technical amendments contained in amending Regulations laid last week, these proposals signal the beginning of the home straight and the success of IMA’s lobbying.”