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BUDGET 2010: IMA welcomes plans to improve competitiveness of UK funds

The Investment Management Association has welcomed plans to improve the competitiveness of UK domiciled funds.

The chancellor announced plans for the HMRC to work with the industry to tackle the fund specific Schedule 19 Stamp Duty Reserve Tax regime.

The tax, which only affects UK funds, is paid in addition to the SDRT paid on fund acquisitions of UK equities. It is currently paid by UK funds investing in other funds, even if those other funds are not invested in UK equities. This tax element being removed will put UK-domiciled funds on a level playing field with offshore funds.

The Government has also announced plans to launch a working group to consult with the industry to create a tax-transparent contractual fund as well as a new regime for funds invested in non-reporting offshore funds.

IMA director of authorised funds and tax Julie Patterson says: “This, coupled with the introduction of  tax-transparent contractual funds, will enable the UK to compete as a domicile  for the new Ucits master-feeder structures and for hedge funds coming onshore.   

“It follows on from improvements to the UK’s fund tax regime that  IMA has secured over the past few years, including certainty that funds will  be treated as investing not trading, tax-efficient regimes for securities and  property funds, and a workable regime for institutional funds.  The more  funds that chose to domicile here rather than offshore, the more business and employment taxes are received by the UK Exchequer.”


Treasury group to probe bank incentives

The Treasury-led Retail Financial Services Forum will investigate how staff targets and incentives within banks lead to poor outcomes for consumers. The forum is made up of representatives from financial services, consumer groups, regulators and Government to champion retail consumers’ interests and help to restore confidence in financial services. According to the Budget, published this […]

UK policy: Kate Moss and short-termism

“Nothing tastes as good as skinny feels,” said supermodel Kate Moss, who is not often credited for her insights into policy making. Perhaps she should be. In politics, as in matters of diet, the course of action that is the best over the long term is often not the most desirable course of action in the short term. Add the instant gratification of the democratic electoral cycle and, instead of good policy making, you sometimes get the equivalent to a midnight binge in front of the fridge.

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