Treasury has published several papers to deliver on its promise to make the UK a more attractive environment for investment funds:
- Trading and investment for Authorised Investment Funds: This suggests new legislation to set some "white list" instruments which, when investment funds deal in them, will be considered as investments. Other instruments may be investments or trading depending on the circumstances, but if one transaction is "trading" this will not taint other transactions. Treasury plans to publish draft legislation early in 2009;
- Offshore funds: further steps: This looks at how the Government plans to change the definition of "offshore fund" for tax purposes and its ideas for modernising the offshore funds tax regime. Treasury wants comments on its ideas by 11 February 2009;
- Investment trust companies: next steps: This looks at responses to previous consultations on tax proposals for ITCs and includes draft legislation to allow trusts to opt to treat dividends as interest distributions. Treasury asks for comments on this by 11 February 2009;
- Tax elected funds: summary of responses: This looks at responses to previous consultation on moving the point of taxation from authorised investment funds to investors. Treasury has confirmed its plans to make this an elective regime and has answered many questions respondents asked; and
- Consultation on draft guidance relating to qualified investor schemes: This aims to explain the new “genuine diversity of ownership” legislation which takes effect from 1 January 2009. The deadline for comment is 30 January 2009.