Government outlines fund taxation boost

Funds will no longer face tax on investment income or interest under Government proposals designed t...

Funds will no longer face tax on investment income or interest under Government proposals designed to improve the UK’s attractiveness as a domicile. Under the framework, vehicles would be able to apply for tax elected status, shifting the point of taxation from the fund to the investor. This means investors face broadly the same tax treatment as they would if they owned the underlying assets directly. To achieve this, funds will have to ensure income remains identifiable as it passes through, with tax treatment for investors depending on the generating asset. According to the IMA, t...