Providers came under pressure last year when HMRC revised the tax treatment of offshore funds. Joanne Young asks how ETF issuers have dealt with the changes and what issues remain
In December 2009, HMRC introduced the reporting fund regime for all offshore funds with UK investors. Replacing the UK distributor status (DS) regime, the conversion meant all ETFs domiciled outside of the UK would have to apply for reporting fund status (RFS) in order to be eligible for capital gains rather than income tax. In many respects it is easier for an ETF to gain RFS than DS, but the transition is significant in an industry in which the vast majority of UK-listed ETFs are domiciled offshore. The following summer in 2010, a BlackRock study prompted a flurry of headlines ...
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