Authorised investment funds – new legislation
New legislation has been published which makes alterations to the authorised investment funds (AIFs) regulations.
The legislation has been drafted to:
- Permit AIFs with holdings in non-reporting offshore funds to treat those holdings as if they were holdings in reporting funds in certain circumstances.
- Increasing the proportion of assets they can hold in non-reporting offshore funds before being subject to a different tax treatment.
These changes will place UK AIFs in a similar position to offshore reporting funds with respect to investments in certain non-reporting offshore funds.
The draft legislation was subject to a consultation process and a number of changes have been made taking into account input and analysis from interested parties.
The legislation is due to come into force on 6 March 2011.