Budget 2013: two new tax transparent fund schemes unveiled

The Treasury has confirmed two regulated tax transparent schemes will be available for UK fund managers.

The news was confirmed in George Osborne's Budget and was part of a wider strategy to make sure the UK funds industry maintained its competitive edge against foreign competition. Other initiatives included the removal of stamp duty on funds sales.

The two authorised contractual schemes (ACS) will be available by the end of spring.  They will be eligible for authorisation as ucits, non-ucits regulated schemes (Nurs) and as a qualified investor scheme.

Both are designed to be attractive to managers looking to pool asset from funds across Europe using ucits IV rules. 

Under the arrangement a UK ACS would form the master fund  into which other ucits funds from across Europe could combine assets. The government says this will create economies of scale and allow industry to reduce costs and increase returns to investors.

'By introducing these vehicles the government is taking a significant step in supporting the UK investment management industry and providing the necessary framework to ensure the UK can be the location of choice for international fund domicile.'