The Investment Management Association is calling for measures to enhance pensions and savings and to optimise the competitiveness of the UK funds industry in its pre-budget representations.
IMA says the Government should increase the limits for ISAs and CTFs, at least in line with inflation. The association says personal saving needs to be encouraged not penalised and has called on the Government to consider abolishing stamp duty, including in flagship Government schemes such as CTFs, ISAs, stakeholder pensions and the proposed new personal accounts.
Referring to a previously published report on the impact of taxation on the domicile of funds, the IMA stresses that business will continue to be lost to Dublin and Luxembourg and the opportunity for the UK to become a significant fund centre diminished with the consequent loss of revenue for the Exchequer, unless action is taken to counter this.
IMA has also called for amendments to measures affecting the efficient operation of authorised investment funds and the offshore funds regime.
Chief executive Richard Saunders says it is crucial that the UK tax regime keeps up with changes to markets and investment practices so as not to disadvantage the industry or hinder the development of the UK as a global centre for asset management.
He says: “We have had a refreshingly open dialogue with the Treasury and HMRC on these matters and hope to see to further progress in the PBR.
“On stamp duty, the charge undermines Government policy by eroding the value of tax-incentivised saving, and eventual abolition needs to become an objective.”