In the Spring Budget 2020, the U.K. government published a consultation (Consultation) on the tax treatment of asset holding companies (AHCs), the vehicles through which alternative funds hold their assets. Alternative funds in that context generally mean closed-end funds of the type described by the Organisation for Economic Co‑operation and Development as being “non‑CIVs” and, in particular, real estate, PE and debt funds. The Consultation is part of the proposed, broader review of the regulatory and tax aspects of the U.K.’s alternative funds industry, and it has also taken place alongside a review of the value-added tax treatment of investment management fees. In a guest article, Cadwalader attorneys Adam Blakemore and Minakshi Mittal detail the policy objectives behind the Consultation, some of the challenges it aims to address, troublesome asset classes for adopting AHCs and a forecast of how issues raised by the Consultation may be resolved. For more on U.K. tax issues, see “Practical Issues Faced by U.S.‑Based Managers When Establishing U.K.‑Listed Funds (Part One of Two)” (Jun. 9, 2016).