HMRC has invited comments on proposed changes to the tax rules for unauthorised unit trusts and their investors. The stated aim is to simplify the rules and reduce administrative burdens while removing avoidance opportunities.
Legislation will be introduced in Finance Bill 2013. The government’s detailed reasons for the proposed changes are set out in its June 2011 consultation.
An unauthorised unit trust (UUT) is ‘any unit trust scheme that is not authorised in terms of the Financial Services and Markets Act 2000’, HMRC said.
‘As UUTs are not regulated, they are not restricted in the investments that they can make (except to the extent governed by the documentation constituting the scheme) or with regards to other factors such as the degree of leverage employed. Unauthorised funds cannot be marketed to the general public (although authorised promoters may market them to “qualified” investors), and such schemes typically have institutional investors.’
HMRC has invited comments on proposed changes to the tax rules for unauthorised unit trusts and their investors. The stated aim is to simplify the rules and reduce administrative burdens while removing avoidance opportunities.
Legislation will be introduced in Finance Bill 2013. The government’s detailed reasons for the proposed changes are set out in its June 2011 consultation.
An unauthorised unit trust (UUT) is ‘any unit trust scheme that is not authorised in terms of the Financial Services and Markets Act 2000’, HMRC said.
‘As UUTs are not regulated, they are not restricted in the investments that they can make (except to the extent governed by the documentation constituting the scheme) or with regards to other factors such as the degree of leverage employed. Unauthorised funds cannot be marketed to the general public (although authorised promoters may market them to “qualified” investors), and such schemes typically have institutional investors.’
