Tax proposals could save start-ups cash

British hedge funds could save hundreds of thousand of pounds in value-added tax imposed on services they purchase more than six months before registering for VAT, if proposals in a government consultation paper are adopted.

A consultation paper from UK Customs and Excise proposes changing current tax and duty laws, which presently state fund managers can only reclaim 17.5% VAT on the services that they have bought within six months of registering for VAT.

Steve McGuinness, managing director of Lo