Change of tax regime for offshore funds

If approved, the tax regime changes currently being discussed will be of utmost importance in enabling UK-resident investors to obtain better CGT treatment for offshore investments

The UK's offshore fund tax rules are changing. Subject to the outcome of a final consultation, with effect from 1 October 2009, offshore funds will be able to elect for 'reporting-fund' status. This will be of major importance in enabling UK-resident investors in offshore funds to obtain favourable capital gains tax (CGT) treatment for their investment in such offshore funds. It should provide for a less burdensome certification process and greater certainty for funds and their investors. Under the existing regime, unless an offshore fund is certified by HM Revenue & Customs (HMRC) as a d...