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Second stage consultation on the taxation of asset holding companies in alternative fund structures

Second stage consultation on the taxation of asset holding companies in alternative fund structures
Published on: 15 February 2021
Published by: LexisPSL
  • Second stage consultation on the taxation of asset holding companies in alternative fund structures
  • This consultation sets out a proposed new tax regime for asset holding companies in alternative fund structures—what are AHCs and what is their role in investment fund structures?
  • This latest consultation follows an earlier government consultation (March 2020) in this area—what were the key drivers behind the initial consultation and what were its key findings?
  • This second stage consultation seeks views on the detailed design features of a new regime for AHCs—what are the key elements of the new regime?
  • The government states that it wishes to remove tax barriers and make the UK a competitive location for AHCs—will the proposed changes fulfil that aim?
  • What changes is the consultation also proposing for the real estate investment trusts (REITs) regime and why?
  • The consultation runs until 23 February 2021—what is the proposed timetable for legislative change?

Article summary

Tax analysis: Jennifer Maskell, counsel at Cleary Gottlieb Steen & Hamilton LLP, discusses HM Treasury’s consultation proposing a new tax regime for asset holding companies (AHCs) in alternative fund structures. She discusses the background to the consultation and its key elements, noting that, while the proposed changes are positive, their effectiveness will turn on the detail. or take a trial to read the full analysis.

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