Investment funds risk losing tax exempt status
Asset managers wishing to set up "master funds" in the UK in line with EU regulations could risk losing their tax exempt status
Asset managers wishing to set up "master funds" in the UK in line with EU regulations could risk losing their tax exempt status
ASSET MANAGERS could fall foul of tax laws if they attempt to take advantage of European Union legislation.
The EU Ucits IV legislation allows groups to set up “master funds” in one jusidiction, which can be fed by “feeder funds” in other EU countries. However, accountancy firm Mazars has warned that UK tax laws would mean that investment funds that take advantage of these regulations would lose their tax exempt status, the Financial Times reported.
Currently, asset managers can trade in certain areas, such as equities and carbon emissions, without losing their status as non-trading, meaning the tax on their growth only falls on investors. However, to qualify for non-trading status, the fund must satisfy a “diversity of ownership” condition, and not be restricted to a specific group of investors.
Carine Beidas, senior manager, financial services tax at Mazars, told the FT that the master funds would only be open to the feeder funds, and would therefore fail to satisfy the condition.
“The UK tax regime still has some way to go for a Ucits IV friendly regime,” said Beidas.
More about:
The numbers you crunch tell a story. Your expertis...
13yEmbracing user-friendly AP systems can turn the tide, streamlining workflows, enhancing compliance, and opening doors to early payment discounts. Read...
View articleOrganisations can enhance their financial operations' efficiency, accuracy, and responsiveness by adopting platforms that offer them self-service cust...
View articleIn a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...
View resourceDiscover how AP dashboards can transform your business by enhancing efficiency and accuracy in tracking key metrics, as revealed by the latest insight...
View articleThe EU is deeply divided over how to increase the tax take from tech giants such as Google, Apple and Amazon, who have recently come under fire for be...
View articleAdvisers anticipate a surge in the number of new tax cases sent to the Court of Justice of the European Union (CJEU) following the UK’s decision to le...
View articleThe CIoT has called on the government to rethink its approach to ensuring online sellers pay the correct amount of VAT. Read More...
View articleThe European Commission said it will examine how to shed more light on tax advisers' activities and create effective disincentives for those that prom...
View articleOsborne's tax move could influence the sensitive negotiations about the UK’s future relationship with Europe Read More...
View articleBritain will continue to attract investment by reducing corporation tax by 5%, Osborne reveals Read More...
View articleThe accountancy world has reacted to the news that the UK has voted to leave the EU Read More...
View articleThe European Parliament has given the green light on an EU investigation into the Panama Papers Read More...
View article