Norwich Fof investors face double taxation on dividends

Onshore bond investors in Norwich Union's unfettered fund of funds (Fofs) face double taxation on di...

Onshore bond investors in Norwich Union's unfettered fund of funds (Fofs) face double taxation on dividends. Launched on 11 October and managed by IMS, the range is Luxembourg-domiciled, which means the dividends paid by the underlying funds are subject to tax at both the Sicav and life fund level. The three Fofs, NU Balanced, NU Cautious and NU Growth, are available through onshore and offshore bonds, as well as non-stakeholder pensions, but only the onshore bonds are liable to both types of taxation. Richard Kelsall, head of product development at Norwich Union, believes the impact...