UK: Consultation on tax treatment of foreign sovereign investors
The consultation period is 4 July 2022 to 12 September 2022.
The consultation period is 4 July 2022 to 12 September 2022.
The UK government on 4 July 2022 launched a consultation on the tax treatment of foreign sovereign investors, such as heads of state and sovereign wealth funds.
The consultation period is 4 July 2022 to 12 September 2022.
- The consultation is intended to provide greater clarity to investors by codifying the UK’s sovereign investment tax regime.
- The consultation also aims to improve the targeting of exemptions that are available to sovereign investors, thereby bringing the UK into line with the tax treatment in Germany and the United States.
- The proposed reforms will look at what types of income are exempt from tax in an effort to determine that it is more targeted towards income that relates to investment rather than trading activities, and income that is passive in nature.
- The effective date of the proposals in the consultation would apply from April 2024.
According to a related release, the UK government does not expect the proposals to have a material impact on foreign investment into the UK.
Read a July 2022 report prepared by the KPMG member firm in the UK
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