Rebirth of the investment trust?

The Government has recently published a Consultation Document which sets out proposals for modernising the tax treatment of approved Investment Trust Companies ('ITCs'). Consequential changes will also be made to UK company law governing distributions from ITCs. ITCs are exempt from UK corporation tax on their chargeable gains, and the recently introduced 'streaming regime' made them more competitive, but nevertheless, over the past decade or so, many fund managers have chosen to launch new funds in more favourable offshore jurisdictions. The proposals seek to enhance the UK's reputation as a competitive jurisdiction from a tax perspective.