Government tax changes make UK funds more attractive to overseas investors
In March 2013 the Government launched the UK Investment Management Strategy and, in a substantial follow-through, HMRC has published final amendments to the tax regime which simplify the ability for UK authorised funds*, marketed overseas, to pay gross interest distributions.
This is attractive to non-UK investors who previously suffered withholding tax and had to cope with complex rules to reclaim the tax or try to receive gross payments.
IMA Director of Regulatory Affairs (Investment Funds and Retail), Julie Patterson said:
“The changes introduced today ensure that a UK fund can be marketed and sold more easily to non-UK investors, and make it more attractive for distributors to promote UK domiciled funds.”
*Funds include all bond funds but also potentially real estate funds and mixed equity/bond funds
