New rules for investment trust companies
HMRC together with HM Treasury (HMT) and the Department for Business, Innovation and Skills (BIS) have published a joint consultation document on possible modernisation of the tax rules for investment trust companies.
This follows an announcement in the recent coalition Government’s Budget that HMRC would be holding a number of consultations before introducing new legislation.
The document lists the following areas that the Government hopes to remedy by the modernisation of the tax rules for investment trust companies:
- The introduction of new rules that facilitate modern investment practice and a wider range of investment strategies;
- Ensuring that UK investors continue to make investment choices for commercial rather than tax reasons;
- Preventing unintended tax advantages being gained through investing in an ITC rather then direct investment;
- Implementing new tax rules at no overall increase in cost to the UK Exchequer.
If you wish to respond to the consultation document you have until 19 October 2010.