Look offshore for a better investment in property funds

Offshore

UK investors do not get many tax advantages from investing offshore, but it is worth doing to find a wider and potentially better range of investments

The offshore fund industry is booming for a number of reasons. The perception has been that it makes clear and irrefutable sense to base a fund in a location outside the UK which does not impose local domestic taxes, to offer investors the opportunity to defer or save tax. But is the general perception accurate? A fund is typically structured as a unit trust or an open or closed ended company. If the fund is established as a UK company or authorised unit trust then it will pay UK corporation tax on its profits in the usual way. Authorised unit trusts pay corporation tax at a rate of 20%. ...