In Tuesday’s Budget, HM Treasury said it would ‘hold formal consultations on a range of issues concerning the asset management sector’. The talks will include discussions around the Ucits IV implementation, introducing a tax transparent fund vehicle, taxation of investment trusts and funds investing in non-reporting funds regulations, as well as Stamp Duty Reserve Tax.
The aim of these discussions is to make the UK a more attractive jurisdiction for the domiciliation of funds and to compete with the likes of Jersey, Luxembourg and Dublin.
Julie Patterson, director of authorised funds & tax at the IMA said: "Over recent years positive steps have been taken to modernise the UK’s fund taxation regime. However in the light of European regulatory developments, more needs to be done. We look forward to working with officials further to enhance the competitiveness of the UK funds industry.”
“In order to compete more strongly for fund domicile business, the UK needs to offer tax transparent contractual vehicles and to abolish the fund-specific and very low tax-generating Stamp Duty Reserve Tax regime.
“The UK could then capitalise on the growth opportunities being created by the UCITS Directive, which enables master-feeder funds to be marketed across Europe, and the Alternative Investment Fund Managers Directive, which is leading non-EU funds to consider relocating to Europe.”
