Fiona Sheffield, Partner, Ernst & Young LLP
What do the gods have in store for hedge funds this year?
Taxation plays a more critical role in the global hedge fund industry than in most other fields. It has become a necessity to establish funds in nil tax jurisdictions, provide product structures that meet diverse, international investor profiles, and, mitigate withholding tax leakage. In addition, for the manager, tax-efficient fee deferrals, and other incentivisation methods to retain and attract the best managers, are just some of the most obvious tax requirements.
Following a summary of a couple of current global tax planning themes, we will explore two specific tax developments which will impact managers in the UK in 2007 and beyond.
It is now widely accepted that hedge funds constitute part of a well-diversified investment portfolio. Institutional investors are increasingly seeking access to this market, despite previous fears relating to lack of...