The new offshore funds regime continues to create much uncertainty for investors and fund managers alike, particularly for managers of private equity-style funds with real estate and infrastructure asset classes, primarily due to the new extended definition of an offshore fund. Also, while the capital gains treatment for investors in ‘Baker’ JPUTs and FCP reporting funds is known, the distinction between the income tax treatment of arising basis income and reported income from these funds is not entirely clear and should ideally be confirmed by HMRC. More importantly, further industry-specific guidance is needed to enable fund managers to work out whether or not the new regime applies to their funds.
