UK to improve tax on asset management
The UK Government has launched three consultation papers that propose tax changes aimed at making investing in UK-managed funds more tax efficient, as it pushes to make the country a more attractive location for asset managers.
The UK Treasury published the papers today. The first proposes the introduction of a direct tax exemption regime for UK authorised investment funds.
The second proposes to remove tax as a barrier to qualified investor schemes, by replacing rules on "substantial holdings".
The last proposes that tax rules be adapted for investment trust companies, to deliver tax efficient investment into interest bearing assets.
Kitty Ussher, the economic secretary to the Treasury, said: "The Government is determined to ensure that the UK remains a competitive place to do business. The consultation papers published today are a step forward in improving the taxation environment for the asset management industry.
"We are determined to maintain momentum on improvements to the taxation of asset management to ensure the industry remains highly competitive in the face of new global challenges.”
These consultations follow a package of measures announced in the 2008 budget that, according to the Government, were designed to make the UK a more competitive location for asset management and to advance the Government's "City competitiveness agenda".
UK-based asset mangers run £3.8 trillion (€5 trillion) of assets and employ more than 25,000 people, the government said: "The UK’s asset management industry is important to the UK’s economy."
--write to whutchings@efinancialnews.com
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