Investment funds grapple with increasingly complex international tax and regulatory issues
In the past few years there have been significant global tax and regulatory developments that have affected the structuring of investment funds. These include the Organisation for Economic Co-operation and Development initiatives to address the tax challenges arising from digitalisation and globalisation of the economy (including the proposal of a global minimum tax rate), the EU’s third Anti-Tax Avoidance Directive on shell entities, the UK's exit from the EU, and tax reforms in the US.
This recent activity has led to the tax authorities across the world introducing more complex reforms. The UK in particular is seeking reform of its funds regime, resulting in an increased number of tax issues and structuring options that have to be considered when establishing an investment fund. It is vital that investors, investees and fund managers comply with the tax and regulatory requirements to achieve their commercial aims and to avoid any fines or penalties.
Osborne Clarke's Investment Funds Tax team has specialists across our European jurisdictions who provide pragmatic, results focussed tax structuring advice on all aspects of a fund's lifecycle. This includes advice on fund structuring and formation, investing into existing fund structures, transactional mandates and the tax efficient structuring of managers' interests in funds. The team acts for a wide range of clients including investment funds, pension funds, managers and investment advisers and has a wealth of experience advising on the tax structuring of real estate, infrastructure, private equity and venture funds.
Osborne Clarke offers the international breadth and experience to call on and coordinate experts from across jurisdictions, and wider best-friend lawyer network to provide advice on all legal and tax aspects of the transaction under one roof. When providing structuring advice, we draw on our deep sector knowledge and understanding of the tax implications of holding of assets to ensure that the structures are fit for investor, investee and/or fund requirements and can be run effectively in practice.
It is vital that investors, investees and fund managers comply with the tax and regulatory requirements to achieve their commercial aims and to avoid any fines or penalties."
We advised Illuminate Financial on £100m round with backing from Barclays and JP Morgan Chase.
InfraRed Capital Partners
Advised InfraRed Capital Partners on UK corporate and tax law aspects of a £250m sale of a portfolio of logistics assets.
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