HM Treasury has launched a consultation on tax and regulatory aspects of the UK funds regime, as flagged at Budget 2020.
HM Treasury has issued its long-awaited consultation on the UK funds regime, with a view to identifying options for making the UK a more attractive location for setting up, managing and administering funds, and which will support a wider range of more efficient investment vehicles better suited to the needs of investors. The review covers tax, regulatory and other aspects of the regime. Respondents are asked a number of questions, including to identify their top three priorities for reform. The review is of particular relevance to UK asset managers and fund administrators and distributors.
The UK’s approach to funds taxation
Any tax reforms will need to be compatible with the UK’s robust approach on tax avoidance and evasion, and with the UK’s international commitments while ensuring that the UK can exercise taxing rights over UK source income. The fundamental approach of the UK tax landscape for funds will continue to ensure that investor decisions are not distorted by tax considerations.
Questions asked of respondents include:
Opportunities for wider reform
More generally, in terms of the UK’s attractiveness as a fund domicile, HM Treasury is seeking views on issues that cut across the tax and regulatory aspects of the UK funds regime, and on aspects of the wider environment relevant to the regime’s utility and appeal; for example:
The deadline for responding to this consultation is 20 April 2021, but please reach out to Nathan Hall or Colin French, or your usual KPMG contact to discuss in the meantime. The Government will analyse responses to this call for input and then intends to consult on specific proposals for reform.
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