View more on these topics

Offshore funds consultation paper to close income gains “loophole”, says Deloitte

The upcoming consultation paper on offshore funds, announced in the pre-budget report, aims to simplify the tax regime, provide certainty to UK investors and increase anti-avoidance, according to Deloitte.

Deloitte director of investment and pensions consulting Stuart Davies says there is a clear intent to close a loophole on the taxation of offshore income gains.

He says: “At the moment, income gains arise on ‘rolled up’ gains. An investor can be non UK resident for as little as one complete tax year to avoid tax on these gains. In future, it is intended that investors will need to be non-resident for five complete tax years, bringing the tax position into line with the taxation of capital gains. This will have a particular impact for advisers and investors who use offshore roll-up funds to defer UK tax, perhaps until they expect to be outside of the UK.”

Davies says another another key objective of the consultation is to propose a new method of defining offshore funds for UK tax purposes.

He says: “The paper introduces the idea of advance election to give certainty and bring taxation of deemed distributions in line with UK funds. Essentially, the new definition of a ‘reporting fund’ will be equivalent to the existing definition of ‘distributor funds’ with some minor relaxation in the qualification rules. This latter point is not likely to have material impact for most investors in retail funds. The change to the tax treatment, described above however, could be very significant for some investors.”


Supermarkets open up audience for boutiques

Fund supermarkets are the ideal scenario for boutiques as they offer them a level playing field, with larger counterparts that have bigger marketing budgets.Cofunds fund manager relations director Russell Lancas-ter said that while boutique firms could not compete with larger players in terms of marketing budget and IFA events, being on a platform opened them […]

Making a timely exit

There has never been a better time for the owner of an IFA to consider selling up, writes Peter Allen, partner in Grant Thornton’s Financial Services Group

Childcare - thumbnail

Three questions for employers…

The Family and Childcare Trust’s annual survey has been widely reported in the media and the two headline figures were these: the average cost of a nursery place for a child under two has risen by 33 per cent since 2010; and the costs have risen by five per cent in a single year.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm