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UK Property Rich Collective Investment Funds held through Canada Life International bonds

The UK Government introduced changes to the taxation of investments in certain UK property funds. Having considered the implications of these changes we have taken the decision to no longer accept new investments into UK property rich collective investment funds and collective investment funds that have the potential to be UK property rich collective funds, from 11 February 2020.


Rules regarding funds investing in UK property

Her Majesty’s Revenue and Customs (HMRC) introduced anti-avoidance tax legislation which was effective from 6 April 2019 to target non-UK residents investing in certain UK property funds.

Non-UK companies like Canada Life International Limited, Canada Life International Assurance (Ireland) DAC and CLI Institutional Limited (Canada Life International) are impacted by the legislation when realising gains from investment funds that invest at least 75% of their assets in UK property. These funds are known as ‘UK property rich collectives’.

As the above companies fall within the scope of this legislation, HMRC will tax any gains made on the sale of these funds when they are held in an international investment bond. These funds may be held directly through the bond, held in a portfolio managed by an investment manager or held on an investment platform.


Further information

You may have some specific questions in response to this update. To assist with this we have prepared a:

Please note this list is for guidance only and is not exhaustive as other collective investments may be impacted.

Alternatively, you can call us on +44 (0) 1624 820 200, Monday to Friday or email us at focus@canadalifeint.com. Call charges may vary and we may record and monitor calls.

 

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This website is for UK professional advisers only and is not approved for use by private customers.

Canada Life Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

Canada Life International Limited and CLI Institutional Limited are Isle of Man registered companies authorised and regulated by the Isle of Man Financial Services Authority.

Canada Life International Assurance (Ireland) DAC is authorised and regulated by the Central Bank of Ireland.

Stonehaven UK Limited and MGM Advantage Life Limited, trading as Canada Life, are subsidiaries of The Canada Life Group (U.K.) Limited. Stonehaven UK Ltd is authorised and regulated by the Financial Conduct Authority. MGM Advantage Life Limited is authorised and regulated by the Financial Conduct Authority.