Reuters – British-based investment companies managing offshore funds could lose tax-exemptions on profits they earn on these funds because of proposed new regulations, accountants KPMG said onFriday.
UK tax collectors have issued new draft guidelines under which UK-registered managers of offshore funds could see their funds’ profits losing their tax free status in certain circumstances, KPMG said.
“Assuming these new draft guidelines are adopted, they (investment firms) will all need to review their arrangements as a matter of extreme urgency in order to ensure that the funds for which they act maintain their tax-free status,” John Neighbour, KPMG tax partner, said in a statement.
KPMG last week also warned that Britain risks being bypassed as a place asset managers want to register their funds because of taxes and regulations, threatening the health of the UK financial industry.
