Proposals to migrate to UK tax residence and apply for UK investment trust status

LONDON, UK: Aberdeen Asian Income Fund Limited’s investment objective is to provide investors with a total return primarily through investing in Asia Pacific securities, including those with an above average yield. The Company currently earns investment income from a diversified portfolio of investments with exposure to the Asia Pacific region, much of which is subject to overseas withholding taxes. The Board has been exploring, with its advisers, the ability for the Company to mitigate the level of these withholding taxes.

In particular, the Board has been advised that a UK tax resident company is able to access lower rates of withholding tax in some jurisdictions than a Jersey tax resident company as there are a greater number of double tax treaty agreements between the UK and overseas jurisdictions. The Board has therefore concluded that, subject to appropriate tax, regulatory and shareholder approvals, it will benefit the Company and its shareholders as a whole if the Company becomes UK tax resident and elects to join the UK’s investment trust regime in order to avail itself of these treaties and the related tax benefits.

For the avoidance of doubt, it is only the tax residency of the Company that the Board proposes to move to the UK at this time. The Company will remain a Jersey incorporated entity, subject to Jersey law and regulation and the oversight of the Jersey Financial Services Commission. In order to effect the proposals, the Company will be required to adopt new articles of association in order to remove the current restrictions on the Company carrying out its business in the UK. 

Further details of the proposals, including the proposed amendments to the articles of association, will be set out in a circular to shareholders of the Company to be published in due course.