Changes in UK fund tax law are helping restore the country's reputation as a major domicile for Ucits funds, according to Julie Patterson, director of authorised funds and tax at the Investment Management Association (IMA).

These include provisions in the Finance Bill that allow UK management companies to manage non-UK Ucits funds without extra tax consequences.

She hopes “a handful of further changes” will allow the UK to offer competitive Ucits master-feeder structures and applauds the planned introduction of “tax-transparent” funds next year.

Speaking at a conference, she also noted that the UK is already a popular haven for alternative investment funds, with around 2,000 based in the country.

The UK's funds industry is hoping the regulatory changes will help the country become more competitive with Europe's two leading Ucits domiciles, Ireland and Luxembourg. These two centres have attracted most attention in recent years as they are felt to offer greater flexibility and tax advantages.

©2011 funds europe