The Bryan Adams Experience

Main Menu

  • Home
  • Canadian guitarist
  • Hit songs
  • Concert venues
  • Tour dates
  • Bryan Adams UK tour

The Bryan Adams Experience

Header Banner

The Bryan Adams Experience

  • Home
  • Canadian guitarist
  • Hit songs
  • Concert venues
  • Tour dates
  • Bryan Adams UK tour
Hit songs
Home›Hit songs›The hit song fund changes tax base due to substance issues

The hit song fund changes tax base due to substance issues

By Theresa P. Saver
April 19, 2021
0
0


Ed Sheeran (29431257)

Hipgnosis Songs Fund has dozens of music catalogs made up of thousands of songs, including Journey’s Don’t Stop Believin, Amy Winehouse’s Back to Black, and Ed Sheeran’s Castle on a Hill.

It has raised over £ 1.1bn in the market and is part of the FTSE250 index, enticing investors with its mission to generate income from the royalties accrued on songs held by the fund.

When launched in 2018, the Guernsey-registered investment company was hailed as an example of the island supporting innovation and showcased its expertise internationally as the fund, founded by Merck Mercuriadis, former manager of artists such as Elton John and Beyonce grabbed the headlines. around the world.

But Hipgnosis has now moved to UK tax residency after getting approval from HM Revenue and Customs to change his status – although local tax experts have said this was not the start of a trend, with a specialized area and a handful of funds.

In a regulatory update, Hipgnosis said: “The company will be considered resident in the UK for tax purposes.”

This decision means that the company is no longer a tax-exempt vehicle in Guernsey.

He added: “The company has applied to become an investment trust company to mitigate the recently increased scope of Guernsey’s economic substance rules, which now apply to Guernsey entities. [including Guernsey tax-exempt vehicles] which are self-managed collective investment undertakings.

The economic substance rules are designed to address concerns that businesses could be used to artificially attract profits disproportionate to economic activities and a substantial economic presence in Guernsey. The regulations apply to a range of activities identified by OCED’s Harmful Tax Practices Forum.

In general, companies are required to demonstrate that they have substance on the island by being ‘directed and managed’, by carrying out ‘basic income generating activities’ and by’ having enough people, of premises and expenses ”in Guernsey.

Guernsey tax expert Tony Mancini of KPMG Channel Islands said: “This is a very specialized area. There are only a handful of self-managed funds that fall under the rules of economic substance. I don’t see this as the start of a trend.

Hipgnosis also explained in more detail what the tax change would mean in practice. The move means that it is exempt from UK tax on taxable gains, but will be subject to UK corporation tax on dividend income received.


Related posts:

  1. Study: Some hit songs from the 90s are erased from memory thanks to the “declension of the song”
  2. Songwriters UNDER THE COVERS WITH VICTORIA SHAW Reveal the Stories Behind the Hit Songs
  3. 7 of his greatest hit songs to date – Guardian Life – The Guardian Nigeria News – Nigeria and World News
  4. Why are hit songs played over and over again? The effect of simple exposure

Categories

  • Bryan Adams UK tour
  • Canadian guitarist
  • Concert venues
  • Hit songs
  • Tour dates

Recent Posts

  • Stray Kids Kick Off Their World Tour In The US: Photos + Fan Reactions
  • Who is Meghan Trainor and what are The Voice judge’s hit songs? – The Irish Sun
  • Mandy Moore cancels remaining 2022 tour dates due to pregnancy
  • Hit songs you didn’t know were written by Prince
  • Voivod needs your help to build a monument to the late guitarist Piggy

Archives

  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • March 2020
  • February 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • November 2018
  • August 2018
  • May 2018
  • March 2018
  • February 2018
  • January 2018
  • September 2017
  • August 2017
  • June 2017
  • March 2017
  • November 2016
  • August 2016
  • June 2016
  • January 2016
  • August 2015
  • May 2015
  • March 2015
  • December 2014
  • October 2014
  • September 2013
  • August 2013
  • July 2013
  • May 2013
  • Privacy Policy
  • Terms and Conditions