The Luxembourg-domiciled Henderson Diversified Income investment trust is to consider changing its place of incorporation to the UK.
In an announcement on the London Stock Exchange the trust, which is managed by Jenna Barnard and John Pattullo, said a number of developments in Luxembourg tax legislation and practice, particularly in relation to transfer pricing, since it launched in 2007 was behind the possible change in its structure.
The statement said: “The board and its advisers have continued to review these developments and have recently concluded that the company's existing structure may involve increased complexity and risk.
“Accordingly, the board is exploring the possibility of simplifying its tax structure by electing to join the UK investment trust company tax regime, including changing its place of incorporation to the United Kingdom.”
The investment trust confirmed any change would likely involve establishing a new UK company “and the liquidation of the company and its Luxembourg subsidiary and would lead to a reduction in annual running costs”.
It added: “The board would not be proposing any changes to the investment management arrangements.
“The board will only recommend this change if it believes it to be in the best interests of shareholders as a whole and expects to update shareholders later this year.”
