Review of the UK funds regime call for input – Law Society response

The proposals

We responded to an HM Treasury (HMT) call for input which seeks input on both tax and regulation as part of HMT’s review of the UK funds regime.

This is a wide ranging call for input, covering direct and indirect tax and relevant areas of funds regulation, including reforms to existing regimes and proposals for possible new fund structures.

The overarching objective of the review is to identify options which will:

  • make the UK a more attractive location to set up, manage and administer funds
  • support a wider range of more efficient investments better suited to investors’ needs

Our view

The approach of the UK funds review should be to aim for a simple, clear and certain funds regime, that is competitive with equivalent laws and regulation in peer jurisdictions.

Specific priority areas including a package of proposed partnership funds taxation changes.

We also identify potential benefits of the UK funds regulatory regime providing a more integrated and flexible range of funds vehicles.

Our response follows our two previous responses to HMT’s first and second stage consultations on the tax treatment of asset holding companies in alternative fund structures, which formed an earlier part of HMT’s work on the UK funds review.

What this means for solicitors

The UK asset management industry is a significant employer in the UK and a world leader in the sector.

Many of our members are involved in providing tax and regulatory advice to asset managers who make and manage investments.

As such, many of our members are frequently called upon to advise on the issues covered by this consultation and have an interest in a well-functioning UK funds regime.

Next steps

The government will analyse responses to this call for input and then has stated that it intends to consult on specific proposals for reform.

Read the call for input on the GOV.UK website