ETF issuers confirm tax status

Tax partners say offshore funds, including ETFs, that have not taken on distributor or reporting fund status can incur income tax of up to 50%, rather than capital gains tax (CGT) at 18% or 28%. Distributor and reporting fund status exempt offshore funds from incurring income tax, although the distributor regime is currently being replaced by the reporting fund status regime. The new reporting regime came into effect on December 1, 2009, with a transitional period for existing funds, which reaches into 2012. The reporting regime provides the same benefits to UK investors as the dis...