The draft legislation (excluding funds) and the proposed treatment of funds were published on Friday 6th July.
The proposed treatment of offshore funds is set out in annexe A of the summary of responses to the consultation. Annexe A can be found on page 33.
As a result of our lobbying (and others) the complex issues around pension funds investing in off shore funds was seen to require more thought, as there was no intention to prejudice them, and so there is further consultation on the matter.
AREF welcomes the government’s commitment to build on the detailed consultation responses and discussions with the Industry in respect of how the proposed Non-Resident Capital Gains Tax rules will apply to Collective Investment Schemes. In particular we are pleased with the acknowledgement of the importance of avoiding tax for exempt investors and reducing the risk of multiple tax charges within fund structures. These are key points that AREF has previously raised with HMRC and HM Treasury.
We intend to continue to engage with HMRC and HM Treasury to ensure that we can reach appropriate solutions that work for the Industry whilst also meeting the government’s aims.