Investment Funds
The term “investment fund” is normally used to describe the many
different types of collective investment vehicles set up to manage
a wide range of investors' money. Investment funds can take
various forms, such as authorised unit trusts, open-ended
investment companies, limited partnerships, offshore trusts or
offshore companies.
Tax is a crucial factor to consider when structuring an
investment fund because one would normally want to ensure that an
investment in a fund will not give rise to a higher tax cost for
the investor than a direct investment in the fund's underlying
investment. Moreover, tax is often an important consideration
when implementing various schemes of reconstruction involving
investment funds (for example, stamp duty and SDRT issues in
connection with the merger of investment funds).
We regularly advise a wide range of investment management
businesses on the various tax issues that need to be considered in
relation to structuring of investment funds (both at fund and
investor level) and provide these clients with innovative tax
efficient solutions.