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In the Press Release (Rev/C&E1) reference is made to the Government taking forward work to replace the offshore fund regime with new rules in the Finance Bill 2003. No definite proposals are put forward at this stage and consultation will continue. However, the results of the consultation so far are made available. The majority ruled out abolition, favouring reform or replacement of the current scheme.

The April 2002 consultation document runs to 31 pages and starts with a clear summary of the scope and intention of the review. It made clear that (in the Inland Revenue&#39s view) the time has come to review the appropriateness of legislation that dates from 1984 (the &#34offshore funds regime”) and whose aim was to prevent investors using such funds to reduce, or even eliminate, the tax they would otherwise pay on their savings income. The Government&#39s aim is the same today – ie. that investors should pay tax on their investment in offshore funds to the same extent as they do in comparable products such as UK based unit trusts and OEICs.

The Government are, however, committed to taking fully into account (as well as their own needs) the needs of investment providers and investors. The Government are also committed to promoting simplicity without undue compliance burdens. The Government wishes, in addition, to enable the fund management industry to promote its funds without undue compliance burdens in Europe and other major international markets.


The Government&#39s pension paradox

It has finally happened. A client of ours has declined to increase his presently modest pension contributions for the explicit and simple reason that he does not want to be bound to having to spend three-quarters of his fund at retirement on buying an annuity.This may come as no great surprise to those of in […]


It appears that the Government will continue to consult on these two important issues. To date most of the speculation and commentary has centred on the domicile issue. It should not however be forgotten that the residence rules (including the concept of ordinary residence) are relatively complex and so some simplification would largely be welcome. […]

Implementation of the Sandler proposals

The Government has welcomed the analysis and proposals made in the Sandler report. The Sandler review made six major recommendations, addressed at the Government and the FSA, all of which are being taken forward in various ways: a series of safer and easier to understand &#39stakeholder&#39 investment products with capped charges, prudential restrictions on investment […]

A gender for change

For some time, I have been interested in the role that sex has to play in the field of pension planning. So I would like to look at a very recent judgment in respect of a transsexual. The judgment has the potential to cause much wider repercussions to occupational pension schemes, in particular.Arguments have continued […]


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