CGT Treatment for MITs – Draft Legislation

The Government has taken another step on the long road to reform of the tax rules for managed investment trusts (‘MITs’).  On 10 December, Exposure Draft legislation was released giving a first glimpse of the rules that are intended to make the capital gains tax regime (‘CGT’) the principal provisions for taxing gains and losses made by MITs.  The text contains a few surprises that were not previously foreshadowed either in the recommendations or consultations so far.  Moreover, the new measures add some confusion about the range of entities that will qualify for CGT treatment, which may render the entire project rather less useful than originally promised.  This Tax Brief examines the Exposure Draft.  For our full Tax Brief - click here