Offshore funds braced as UK eyes up loophole

The funds industry in the Channel Islands and Isle of Man will be hit if the UK Government makes an expected change to the taxation of offshore property funds in its Pre-Budget Report in November or December. The Government is considering whether to crack down on a loophole that enables property to be transferred from a limited partnership in the UK to an offshore unit trust without triggering a 4% Stamp Duty Land Tax (SDLT) charge. When an investor sells their units in the offshore property fund, this is not subject to SDLT either. The Government has been concerned that property dealers...