Structured product 'disguised' interest may be subject to higher taxes

Guy Fawkes mask used in the film V for Vendetta
UK tax authority scrutinises disguised interest

A change in the law on the taxation of interest in the UK could see gains on more types of structured products subject to income tax from the 2013 financial year, according to industry participants.

The returns specifically being targeted by HM Revenue and Customs (HMRC) arise from so-called disguised interest.

This relates to a product that is structured so that it mirrors the security of a standard deposit and produces what the HMRC refers to as "economically an interest-like return", yet is

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