Offshore funds

Legislation will be introduced in Finance Bill to provide similar treatment to that given by TCGA 1992 s 99  for investments in unit trusts to investments in other types of offshore funds that are not companies unit trusts or partnerships.

The effect of this change will be that an interest in a transparent offshore fund will be an asset for the purpose of calculating capital gains tax on chargeable gains (as is already the case for shares in a company or units in a unit trust).

Investors will no longer be required to consider disposals of the underlying assets for calculating capital gains tax on chargeable gains.

There will be no effect on interests in tax transparent foreign partnerships which will continue to be treated as transparent for both income and gains in the same way as UK partnerships.

The new treatment will apply to investments in contract-based offshore...