FSA delays hedge fund decision

Date: Sunday, November 18, 2007
Author: Ellen Kelleher, Financial Times

The Financial Services Authority has postponed publishing rules likely to increase the number of funds of hedge funds investors are able to buy until early next year.

A decision was made to put off issuing a policy statement on the matter because the offshore fund industry is still lobbying the Revenue to receive more favourable tax treatment.

As it stands, UK investors who buy offshore funds, which do not have so-called "distributor" status must pay income tax, not capital gains tax.