Citation. Gabbai, Sarah and Stitt, Tony (2010): “An overview of the new UK regime for offshore funds.” British Tax Review 1, 1-9
Introduction
The Offshore Funds (Tax) Regulations 20091 (the new offshore funds regulations), which came into force on December 1, 2009, represent the UK Government’s attempt to achieve greater tax efficiency and certainty for offshore funds. While some provisions remain ambiguous and others continue to be developed, the new regime may on the whole prove advantageous for both investors and managers. This note explains the main features of the new regime and highlights some of the possible attractions.
The new UK tax regime for offshore funds followed extensive consultation by the UK Government. The Government felt that the pre-December 1, 2009 regime was simply no longer compatible with the current marketplace and regulatory environment, both of which had changed significantly since 1984 when the offshore funds rules were first introduced. Accordingly, the Government proposed to simplify the operation of the pre-December 1, 2009 regime, provide greater certainty for investors and fund managers, modernise the regime at no extra cost to the Exchequer and, to the extent possible, achieve economic parity between investors in offshore funds and UK authorised investment funds (AIFs).2 [click to continue…]
- The Offshore Funds (Tax) Regulations 2009 (SI 2009/3001). [↩]
- Authorised investment funds comprise authorised unit trusts and UK open-ended investment companies (OEICs). As regards the policy, see HM Treasury, Offshore funds: further steps (December 2008) at [1.2], available at www.hm-treasury.gov.uk/d/consult_offshorefunds_furthersteps.pdf [Accessed December 16, 2009]. [↩]
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