How is the income treated for tax purposes?
As the funds are based offshore, income is normally paid gross of withholding or other taxes. For UK corporate investors, an investment in the fund is treated as a loan relationship under the Finance Act 1996 and dividends are taxed as interest receipts. UK resident individuals are liable to UK tax at 32.5% on any dividend received / reinvested. However, we recommend that each potential investor seek independent tax advice.
As the Funds are based offshore, income is paid gross of withholding or other taxes. For UK corporate investors, an investment in the Fund is treated as a loan relationship under the Finance Act 1996 and dividends are taxed as interest receipts. Following changes introduced in the 2009 Budget, dividends arising on or after 22 April 2009 will be treated as interest income in the hands of UK resident individuals. Higher rate taxpayers will therefore be liable to UK tax at 40% on any dividend received / reinvested. However, we recommend that each potential investor seek independent tax advice.
