The funds industry is convinced that HM Revenue & Customs has challenged at least two retail total re...
The funds industry is convinced that HM Revenue & Customs has challenged at least two retail total return vehicles on their use of derivatives, in a move that could lead a fund to lose its investment status and face a hefty tax charge. The issue surrounds an age-old question in the funds industry: when is a fund investing and when is it trading – with the latter having serious consequences for the fund and its investors. If the HMRC were to a find a mutual fund guilty of trading, it would lose its tax status and any capital returns in the fund would be taxed as income, effectively meaning ...
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