after many aborted attempts, changes to the offshore funds regime, which penalises multi-tiered funds, appear to be back on the agenda
The current offshore funds regime was introduced in 1984 to cut back on offshore investors avoiding income tax charges. In the 23 years since there have been several commercial changes in the offshore funds industry, which means the net effect is multi-tiered funds, such as funds of funds, are penalised. The problem stems with the tax status of funds. Put simply, certain offshore funds do not qualify for capital gains tax (CGT) taper relief. This was not a result of the Government actively penalising the funds, but a by-product of its aim back in the mid-1980s to stop investors using offs...
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