CGT Rules for Managed Investment Trusts

In the May 2009 Budget, the Government announced that it had accepted one of the interim recommendations made by the Board of Taxation as part of its current review of the tax arrangements applying to managed investments trusts – namely, that MITs would be able to elect to apply capital gains tax treatment exclusively to gains and losses made on certain types of trust assets.  Treasury has released a brief Discussion Paper giving some further detail on the Budget announcement and identifying the issues on which it is seeking submissions.  This Tax Brief examines the design features of the new proposal and the kinds of qualifications that are going to constrain its scope and operation.  This is a very welcome policy development, but as will be seen, the promise of implementing it in a regime that would prove to be simple, neat and elegant is now looking less likely.  For our full Tax Brief - click here