The introduction of DIMF legislation, effective from 6 April 2015 and designed to tax “disguised fees” arising to individuals providing investment management services, has created a great deal of uncertainty for fund managers.
It is clear that the new rules will impose a significant compliance burden on all fund managers, not to mention a potential exposure to income tax. Investments will clearly need to be monitored very carefully to ensure that the legislation does not have a dramatic impact on fund members.
Whilst we advise on the personal tax implications of individuals, we are not experts in the management of hedge funds. We are, however, pleased to attach a recent article written by David Butler, an expert in his field and leading adviser to the hedge fund industry, which gives an insight into some of the current issues.
Should you wish to discuss further, please do not hesitate to contact David directly, or alternatively your usual Saffron contact.