|
For Immediate Release: Wednesday 17 March 2004
IMA’s response to the 2004 Budget
IMA welcomes the announcement by the Chancellor that the Government will proceed with pensions tax simplification in order to ensure a new generation of flexible, transparent, and cost efficient pensions products, which will encourage more people to save.
Coupled with the introduction of Child Trust Funds, this is a further commitment to a long-term savings framework and outlines the Chancellor’s recognition of the fact that there is a “need to strengthen the savings habits of future generations”.
With this in mind the IMA is therefore disappointed that there was no last minute reprieve for the ISA dividend tax credit, despite the weight of opinion outside the Government favouring its retention.
Also welcome is the Government’s readiness to discuss the simplification of taxation on pooled investment vehicles as this represents a further opportunity to encourage savings. The IMA has outlined its proposals for achieving this in its January submission to the Treasury Select Committee Inquiry into “Restoring confidence in long-term savings”.
After extensive lobbying the IMA is pleased with the Chancellor’s announcement to reform the offshore funds rules, which relaxes barriers to entry to the UK market for funds domiciled in other EU jurisdictions. IMA will, however, continue to lobby for complete abolition of the regime.
Richard Saunders, Chief Executive of the IMA commented:
“For saving, this Budget is a curate’s egg. It is very good news that the Chancellor is going ahead with pensions simplification and we certainly welcome the signal of readiness to look at the simplification of other pooled savings vehicles, like funds. But, despite describing ISAs as ‘the Government’s primary vehicle for tax-free saving outside pensions’, the Budget offers no new ideas following the abolition of the dividend tax credit.
“The reforms to the offshore funds rules are however welcome, and we will be responding to the consultation paper on property investment funds to ensure that open-ended funds are given a fair crack of the whip.”
-Ends-
For further information, please contact:
Richard Saunders, Chief Executive, IMA, 020 7831 0898
Helen Stephenson, Communications Officer, IMA, 020 7831 0898
Out of hours contact:
Mona Patel, Head of Communications, IMA, 07834 089332
Notes to Editors:
The IMA’s submission to the Treasury Select Committee can be found at:
www.investmentuk.org/news/research/2004/topic/savings/TSConLongTermSavings.pdf
|
