UK to lose out to offshore rivals if pre-Budget tax proposals go ahead

The UK fund industry is in danger of losing substantial assets to its offshore competition following the announcement of plans to tax large investors in UK-based funds. The warning came after the pre-budget statement by the British Chancellor of the Exchequer Gordon Brown, in which he proposed that a capital gains tax should be imposed on UK funds if a single investor holds 10% or more of the assets. The obvious way to avoid this tax would be to move the money offshore, according to law firm Eversheds. "If the proposals go ahead it is likely managers would restructure and merge with their...