# UK drops plan to tax sovereign wealth funds
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-03-17
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: UK drops plan to tax sovereign wealth funds investing in
Meta Description: Government document reveals decision to maintain exemption on direct taxation for sovereign wealth funds, in response to consultation feedback.
URL: https://financedigest.com/uk-drops-plan-to-tax-sovereign-wealth-fundshtml

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LONDON (Reuters) – British finance minister Jeremy Hunt has dropped a plan to tax sovereign wealth funds investing in Britain, according to a government document.

The report, detailing the measures in a budget plan announced by Hunt on Wednesday, said “the government has carefully considered” responses to its consultation on the immunity of sovereign funds from direct taxation.

“It has decided that there will be no change to the current exemption, and that it will continue to operate as it does now,” the document – which was first reported by the Financial Times on Friday – said.

The FT said business and trade minister Kemi Badenoch had urged the [Treasury to drop](https://www.financedigest.com/wall-street-drops-treasury-yields-gyrate-on-fed-chairman-powells-remarks.html "Wall Street drops, Treasury yields gyrate on Fed Chairman Powell’s remarks") the proposals out of concern that sovereign funds might pull out of projects in Britain.

Sovereign [wealth funds](https://www.financedigest.com/norway-wealth-fund-employee-sues-for-workplace-gender-discrimination.html "Norway wealth fund employee sues for workplace gender discrimination") from the Middle East and elsewhere have been big investors in some British infrastructure projects as well as in commercial property.

(Writing by William Schomberg; editing by William James)


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