D8.140 Tax elected funds—overview

D8.140 Tax elected funds—overview

For the latest New Development, see ND.2094.

Historically, there had been a perception among potential investors and those that market funds that the UK tax regime applying to authorised investment funds was less favourable than the local tax regimes applying to Luxembourg funds or Irish funds. The introduction of tax elected funds¹ (TEF) was intended to change this perception by removing any possibility that there might be a UK corporation tax liability in the fund. More to the point, a fund that elects to be a TEF may well be marketed as a