UK Outlines Beneficial Tax Treatment for Asset Holding Companies

A new initiative is underway in the UK to increase its attractiveness as a fund and asset holding company jurisdiction for alternative investment funds.  Indicative of the potential for greater flexibility in its post-Brexit economic policy, the UK government has affirmed its commitment to implementing a competitive new regime, addressing the domestic tax challenges faced by managers forming intermediate entities through which alternative investment funds hold assets.  The enhancements to the UK fiscal framework will aim to capitalise on the UK's strengths as a leading fund and asset holding jurisdiction, notably at a time of corporate tax changes elsewhere in Europe, while maintaining the country's relevance in the alternative investment fund management sphere, following its withdrawal from the European Union.