Introduction of a UK tax-transparent vehicle - Mazars - United Kingdom
Introduction of a UK tax-transparent vehicle
The Government will add a new tax-transparent vehicle to its collection of Authorised Investment Funds in 2012 with consultation from June 2011 on the regulatory and tax aspects of the new regime.
Some Member States have tax-transparent funds such as the Fonds Communs de Placement (“FCP”) in France and Luxembourg and the Common Contractual Funds (“CCF”) in Ireland.
They are likely to be popular choices in a UCITS IV structure, preventing the generation of double layers of taxation in the vehicle, and they are already developing into credible alternatives to life insurance products for pension schemes.
By contrast, although UK funds have made considerable progress in terms of tax-transparency in the past few years, they remain essentially tax-opaque entities, with tax determined at the level of the fund. Even Tax Elected Funds, which were introduced two years ago to achieve pseudo-transparency by means of streaming distributions into different components and shifting the tax charge from the fund to the investor are not truly transparent. The new vehicle will be a welcome addition to the range of UK investment funds.
For more information please contact:
Senior Manager, Financial Services Tax
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- Copyright 2012 - Mazars - United Kingdom
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- Copyright 2012 - Mazars - United Kingdom
