.png)
.png)
What are the UK tax implications of a Hindu undivided family fund? Readers provide advice on this entity from both and Indian and UK taxation perspectives. The fund itself is exempt under Indian tax law, but this will not be the case in the UK
We have a client who is resident but not domiciled in the UK. He has a share in a Hindu undivided family (HUF) fund together with other UK resident family members. The HUF would appear to be similar to a discretionary trust.
Because all the members of the HUF are UK resident would it be treated as a UK resident trust? The HUF holds the following assets in India.
- Shares in a corporate trading entity incorporated in India.
- Share of a trading partnership.
- A residential property.
- Portfolio of Indian listed shares.
- Cash deposits in bank accounts.
It would be very helpful to hear from anyone who has come across such a fund. How is it treated for UK tax purposes in respect of its distribution of income (dividends...
