Introduction Background Note
5.The Government has announced its intention to legislate to enable the UK regulator to authorise, under the UCITS IV directive(1), tax transparent collective investment schemes, to be constituted by contractual arrangements. The purpose of this section is to provide powers for the appropriate tax treatment of gains made by UK investors on assets held in specified new types of collective investment scheme.
6.As the legislation to enable authorisation of specific types of tax-transparent collective investment scheme is yet to be enacted, this section provides a power to specify the tax treatment of participants in collective investment schemes. It is anticipated that the power will be used on the enactment of legislation to authorise new schemes.
7.Specific anticipated uses of the power will be to: