For immediate release: Wednesday 6 December 2006

IMA RESPONDS TO 2006 PRE-BUDGET REPORT

Following today's Pre-Budget Report, Richard Saunders, Chief Executive of the Investment Management Association (IMA) commented:

"We welcome Gordon Brown's confirmation that ISAs are to become a permanent part of the UK savings landscape. However, we are disappointed that neither the issues of raising limits or improving incentives for ISA investors have been addressed.

The announcement that there is to be stamp duty reserve tax (SDRT) relief for non-UK exchange-traded funds is a good first step to reducing the distortions imposed by SDRT and we urge the Chancellor to consider extending this further to authorised investment funds.

Finally, we note that no amendments are imminent for authorised funds investing in property to correct the position for exempt investors who suffer tax on rental income. We welcome therefore, the Government's confirmation that discussions are to continue in order to ensure a level playing field."

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For further information, please contact:
Helen Stephenson, Communications Officer, IMA, 020 7831 0898

Out of hours contact:
Mona Patel, Head of Communications, IMA, 07834 089332