ETC tax gulf due to structural inconsistencies

Exchange-traded product issuer Source says its ETCs are all subject to income tax rates ­- up to 50%. Other issuers, such as ETF Securities, say their ETCs incur capital gains tax (CGT) at 18% or 28%, as they have filed for and received distributor or reporting fund status. The issue comes to light following media scrutiny over the tax treatment of gains from ETFs for UK investors. Tax partners say investors holding ETFs that do not have distributor or reporting fund status could pay income tax as opposed CGT. However, there is less clarity surrounding the treatment of ETCs, as the...