On 9 December 2022, the UK government launched a consultation setting out its proposed reforms of the UK VAT treatment of fund management. The full consultation can be found here.
The consultation is the long awaited follow up to Budget 2020 in which a wide-ranging review of the UK’s funds regime, covering both tax and relevant areas of regulation, was promised. The stated overarching objective of the review was to identify options to make the UK an even more attractive location to set up, manage and administer funds, as well as support a wider range of more efficient investments better suited to investors’ needs. As part of this review the UK government promised to introduce a new tax regime for qualifying asset holding companies (QAHCs) in certain fund structures and explore ways to simplify the VAT treatment of fund management fees for UK domiciled funds.
The UK QAHC regime was launched in April 2022 and, until now, publicly there had been no further news on the VAT related aspect of the review.
Source: weil.com
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