The U.K.'s Inland Revenue has opened the door to international pooling of multinational corporate pension assets on a global scale through U.K.-based pooled investment vehicles.
Equally important will be the ability for money managers to create tax-efficient unit trusts for specialized asset classes and for smaller investors that can be marketed at home and abroad. New regulations, going into effect July 11, will permit creation of ``pension fund pooling vehicles'' that would be exempt from income, stamp and capital gains taxes. U.K. pension funds for both British employees and British expatriates working overseas automatically would be eligible.
Non-U.K. pension funds whose pension systems are broadly similar to Britain's would be eligible for a ``fast-track'' approval process from the Inland Revenue's Pension Schemes Office. Those countries include the United States, the Netherlands, Australia, Belgium, France, Germany, Ireland and New Zealand. Schemes from Guernsey, Isle of Man and Jersey also would be eligible. Tax authorities outside Britain have not ruled on the status of such pools.