Budget tax changes boost UK's bid for fund business

Government intervention may be the end of manager exodus to offshore domiciles

The unfavourable tax environment that led to the massive fund manager move to offshore domiciles has been tipped to end, following intervention by the Government last month. In last month's Budget, Chancellor Alistair Darling introduced a raft of changes to enable the UK to compete with dominant tax-efficient offshore centres - such as the Cayman Islands, Dublin and Luxembourg. The Government proposes the September launch of a tax-elected funds regime, allowing UK-authorised investment funds to be marketed competitively to UK investors and worldwide. Under the new rules, tax is paid b...