The HF industry body seemed satisfied with the Treasury’s draft regulations that aim at simplifying the tax structure and providing more certainty to UK investors and funds. They have welcomed the proposals to include accumulation fund, abolition of 5% investment tests and introducing flexibility by allowing 3 breaches in 10 years. However they are worried about administrative complexity which can increase cost and cause other difficulties for managers and investors.

AIMA has asked the treasury to announce all the proposed changes to the offshore fund regime, particularly in context with the impact of the new regime on the ongoing developments of the funds of alternative investments funds. The association has asked for full draft regulations for a complete evaluation of the proposal. Further regulations are expected on issues like distinguishing between capital and income, period to which new regulations will apply, measures available to manage the transition from draft to new regulations and the proposed amendment to the definition of “offshore funds” in the 2009 finance bill.

“We regard the proposals for a new offshore funds regime as a step toward achieving a more efficient regime, but feel the changes fall short of the objective of creating certainty for investors and funds,” says Aima deputy chief executive Andrew Baker. Aima has proposed changes to HM treasury to achieve effective and flexible system to benefit fund managers and investors.

 

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