Sweden: UK UCITS funds – Brexit impact

19.11.2020

Clearstream Banking1 would like to remind customers that effective

1 January 2021

UK funds, currently established in accordance with Directive 2009/65/EC of the European Parliament and of the Council of 13 July 2009 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS) (the “UCITS Directive”) will be treated as non-UCITS post Brexit.

This is because one of the prerequisites to qualify for such a rate, is that the beneficial owner must be resident in a country of the European Economic Area (EEA).

Impact on customers

Customers wishing to continue to request relief or exemption at source on Swedish dividends via Clearstream Banking, for the impacted beneficial owner types, must therefore, as of 1 January 2021 and prior to the relevant Clearstream Banking deadline, provide new valid certification, should the beneficial owner qualify for either:

  • A reduced tax rate under the provisions of the Double Taxation Treaty (DTT); or
  • Full exemption, if considered as equal to a Swedish investment fund qualifying for full tax exemption according to the procedure for non-UCITS funds.

Existing certification provided by customers for UK funds that are currently claiming exemption in accordance with the UCITS Directive will no longer be valid as of this date.

Further information

For further information, customers may contact Clearstream Banking Client Services, their Relationship Officer or Tax Help Desk.

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1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG (for Clearstream Banking AG customers using Creation Accounts), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.