Hedge funds want emissions tax parity

Hedge funds are worried that London may lose its position as the centre for
global emissions trading if HM
Revenue & Customs
does not allow existing hedge fund tax breaks
to be extended to ‘green’ trading instruments.

According to the Daily
there is concern among hedge funds that the UK investment
manager exemption (IME) will not be extended to emissions trading.

The IME allows managers to control funds from the UK without paying UK tax,
as long as certain investment criteria are met.

HMRC is reviewing the IME criteria, and concern is increasing that emissions
investments may be excluded.

The Alternative Investment
Management Association
, the hedge fund professional body, has
strong views on the IME review and is preparing a hard-hitting response document
to the review.

Further reading:

E&Y gears up to fight hedge fund lawsuit

Investors dissatisfied with hedge funds

Hedge fund managers under revenue spotlight

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