UK funds: competitive overview

In recent years, the UK fund management industry has predominantly serviced only the UK domestic market. The 1985 Undertakings for Collective Investment in Transferable Securities (UCITS) Directive provided for the first time a European passport for funds, but other domiciles - notably, Luxembourg and Ireland - quickly established themselves as export domiciles of choice. Significant tax reforms from 2008 onwards have removed most of the tax barriers that had previously prevented the UK from competing against these other jurisdictions. The UK fund tax regime is now broadly competitive and the UK's favourable tax treaty network remains a clear advantage.