The Treasury says it is serious about supporting the UK asset management industry, saying its move earlier this year to provide tax breaks for fund managers “was not easy”.
Speaking at the Tisa annual conference in London last week, Treasury financial services strategy deputy director Will Brandon said the abolition of Schedule 19 stamp duty on UK funds, announced in this year’s Budget in March, shows the Government is “sincere” about supporting fund groups.
He said: “It shows the Government has got skin in the game. We are serious about this, it was not easy to provide that tax break at this time.”
He said one reason for abolishing the tax was because it was seen as a barrier to domiciling funds in the UK.
Brandon said: “A lot of people felt Schedule 19 was contributing to the success of Dublin and Luxembourg.”
He said the UK “cannot be complacent” about its strong position in the asset management market.
Brandon added: “We want to create an environment where people can prosper by domiciling and managing funds in the UK, and where they can produce returns for investors that continue to make the UK a preferred destination for investors’ money. That includes domestic investors, to ensure they keep their money here.
“We are hoping to see real returns in terms of growth in the industry and growth in fund domicile. And the more returns we see from that, the easier it will be to respond to suggestions and policy proposals because when we see things working it is much easier to implement new proposals.”