Collective investments: what investors want

Investors rightly want the best of all worlds and often for collective investments that means the benefits of using a collective scheme to spread risk and diversify with the benefits of a competitive return and a minimal tax burden.

With the current disparity between the additional rate of income tax (50%) and the top rate of capital gains tax (28%) it is easy to see the potential tax attractiveness of trying to roll up profit offshore in the hope any disposal of an interest in the collective investment scheme will be capital. For non-UK domiciliaries there is the added advantage that an investment in an offshore fund shall be excluded property for inheritance tax purposes.  However under the new offshore funds rules...