HM Treasury has published a summary of responses to its consultation on the U.K. funds regime. The consultation forms part of the U.K. Government's plans to make the U.K. a more attractive location for asset management.

Taking account of the feedback received, the U.K. Government intends to:

• Make taxation of funds simpler and more efficient: HM Treasury intends to take forward a review of the genuine diversity of ownership requirement and will consider options to improve the tax efficiency of U.K.-authorized funds. It will also focus on further reforms to Real Estate Investment Trusts;
• Expand the range of investment products available in the U.K.: HM Treasury plans to establish a working group with HM Revenue and Customs and the U.K. Financial Conduct Authority to progress work on distribution of capital by authorized funds  and to explore options for introducing a new unauthorized contractual scheme fund structure; and
• Explore opportunities to support the wider funds environment: HM Treasury will engage with industry to determine what authorized fund managers would find helpful in terms of additional information regarding the application process and will consider how to promote the U.K.'s fund offering abroad.

The U.K. Government is also planning to publish a consultation on the VAT treatment of fund management fees in the coming months.

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