New offshore funds legislation
The Offshore Funds (Tax) (Amendment) Regulations 2009 (SI 2009 – No. 3001) were laid before Parliament on 1 December 2009 and came into force on 22 December 2009.
The regulations amend The Offshore Funds (Tax) Regulations 2009 (SI 2009/3001) which are designed to make proper provision for the taxation of UK resident investors in offshore funds in respect of income tax, corporation tax and capital gains tax.
The regulations have been drafted with the following policy objectives:
- To facilitate the immediate use of the additional provisions and to avoid any investors losing the benefit of the amendments to the transitional provisions.
- To modify the transitional provisions within the principal Regulations.
- To ensure that ‘grandfathering provisions’ applying to investments not previously within the regime apply to investments in reporting as well as nonreporting funds.
- To amend the time limit for applications for reporting fund status in the case of funds newly launched in the United Kingdom.