Authorised investments spared additional tax

Details of Inland Revenue document REV07, entitled Reform of taxation of collective investment schemes, suggests changes are now being made to proposals for the substantial ownership rule - first tabled in the pre-Budget report 2004 - which would have seen all authorised investment funds (AIF), unit trusts and OEICS subject to an additional 10% corporation tax to capital gains within the fund if they hold 10% or more of the fund’s assets. The investment industry has lobbied the Treasury on this proposal as this could have cost investors 30% in tax, so changes are now being made to ensure...