Funds Taxation/Budget 2014

There are the following Budget Day 2014 announcements affecting funds taxation:- SDRT on transactions in collective investment schemes will cease from 30 March 2014.  There will continue to be SDRT on There are the following Budget Day 2014 announcements affecting funds taxation:-

• SDRT on transactions in collective investment schemes will cease from 30 March 2014.  There will continue to be SDRT on non-pro rata in specie redemptions.


• The subscription limit for both stocks and shares and cash ISAs (to be called "NISAs") is being increased to £15,000 from 1 July 2014.  The subscription limit for Junior ISAs will be increased to £4,000 also from 1 July 2014.


• A loophole permitting VCTs to return share capital to investors within three years will be closed from 6 April 2014.


• The 15% SDLT rate, the ATED charge and the capital gains tax will over a period be applied to residential property with a value in excess of £500,000.

The abolition of SDRT for collective investment scheme has of course been flagged for some time.  A number of other changes relating to funds taxation will continue in parallel, for example:

• The widening of the definition of investment transactions from 6 April 2014.


• UK management of offshore funds.


• Allowing UK domiciled bond funds to pay interest gross when marketed to non-UK residents.


• Changes to the tax rules for unauthorised unit trusts and their investors.