Providers are confirming the tax status of their UK ETF ranges, following scrutiny in the media over whether investors incur income tax or capital gains tax rates.
Tax partners say offshore funds, including ETFs, that have not taken on distributor or reporting fund status can incur income tax of up to 50%, rather than capital gains tax (CGT) at 18% or 28%. Distributor and reporting fund status exempt offshore funds from incurring income tax, although the distributor regime is currently being replaced by the reporting fund status regime. The new reporting regime came into effect on December 1, 2009, with a transitional period for existing funds, which reaches into 2012. The reporting regime provides the same benefits to UK investors as the dis...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes