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.<\/p>\n
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.<\/p>\n
“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.<\/p>\n
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.<\/p>\n