View more on these topics

IMA wants single 15% fund tax

The Investment Management Association is calling for a 15 per cent simplified savings tax for investment funds.

It wants the Government to set one savings rate to apply to income, gains and all asset classes. At present, there are five existing and two potential tax regimes, with qualifying investor schemes and property investment funds due to be introduced. The IMA&#39s radical proposals call for incentives to encourage savings. It wants to exempt lower-rate taxpayers, offer a tax-free allowance after which receipts are taxed at the single rate, continue Isa tax relief, and introduce a lower savings tax rate of 5 per cent.

IMA chief executive Richard Saunders says: “The time is right for a fresh and radical look at the savings landscape. Our proposals seek above all simplicity and clarity for investors. The Government is collapsing eight pension tax regimes into one and the same is possible for the taxation of funds.”

Isis Asset Management believes a simplified rate is workable but there could be a knock-on effect on investments outside the IMA&#39s remit. It says onshore and offshore funds would be treated equally and offshore investments could be marketed more heavily in the UK. It says some form of exemption or tax-free savings would be needed on products such as Isas or they could become pro- hibitively costly for small investors who use the product for its capital gains tax exemption.

Isis director of communications Jason Hollands says: “There are clearly issues that require further examination. This merits serious consideration from policymakers.”


Customs briefing sets out position on network VAT

Support services providers could face Vat bills on member services but traditional networks will escape the charges, according to a leading tax expert. After industry pressure, HM Customs and Excise has issued a business briefing to explain how Vat should be applied to IFA networks in the future. The briefing, which was quietly issued to […]

Trusts move towards open architecture

A new trend towards open architecture is set to sweep through the investment trust sector, says the Association of Investment Trust Companies. It believes increasing numbers of investment trusts will change their structures in a bid to become more competitive. Communications director Annabel Brodie-Smith thinks firms will move to an open architecture structure that allows […]

What&#39s on in Manchester

CONFERENCE ROOM 1SESSION 109:00-09:30Opening Keynote SpeechPaul Rich, Sector Leader Manager for Retail Intermediaries, FSA SESSION 209:45-10:45Mortgage Regulation Panel DebateThe panel will discuss which exams intermediaries will need to pass under the new regime, the regulatory position on General Insurance, Lifetime Mortgages, Home Reversion Mortgages,and the options available to intermediaries in order to remain fully qualified. […]

Millfield pays 500% rise in £2m bill

IFA firms Millfield and Inter-Alliance have paid more than £2m to the FSA this year, including £840,000 to the Financial Services Compensation Scheme. Millfield chief executive Paul Tebbutt has revealed that the firms were faced with a 500 per cent increase in their FSCS levy. Of the £840,000 that the group handed over to the […]

Rise of the machines

Head of Sustainable Investing at Royal London Asset Management, Mike Fox, looks at the case for including artificial intelligence within a sustainable investment strategy. Read the article in full here The value of investments and the income from them is not guaranteed and may go down as well as up and investors may not get […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm