Gov't quells offshore fofs fear

Following a meeting last week involving Treasury minister Ed Balls, the Government said it will change the tax rules regarding offshore first tier fund of funds in the 2007 Finance Bill. A spokesperson from the treasury said: “We are going to clarify the tax treatment of fund of funds based offshore in response to a great deal of financial innovation that has taken place following the 1984 rules.” The announcement means the Government will amend the rules to make it clear offshore fund of funds fall under the 1984 legislation regarding offshore funds, and the move represents an admiss...