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For immediate release: Friday 15 December 2006
IMA WELCOMES TREASURY/INDUSTRY WORKING GROUP TO ADDRESS FUND TAXATION IN THE UK
Following the announcement yesterday by the Economic Secretary, Ed Balls MP, that a working party is to be set up to address the issues outlined in the IMA/KPMG report "Taxation and the competitiveness of UK funds", Richard Saunders, Chief Executive of the IMA commented:
"We commissioned the KPMG report in order to engage the Treasury in a serious debate about the unintended consequences of UK tax rules. I am delighted that Ed Balls has responded in kind and look forward to working with him and his officials on the very real issues that the report raised."
Tom Brown, Head of Investment Management and Funds at KPMG in the UK, said:
"This is great news for the UK investment management industry as the Government intends seriously to consider its views. We look forward to a renewed working relationship between the tax authorities and the investment management industry as there is still a window of opportunity, albeit a small one, to establish the UK as a competitive funds centre."
A copy of the IMA/KPMG report and a link to Mr Balls' s speech is attached.
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For further information, please contact:
Helen Stephenson, Communications Officer, IMA 020 7831 0898
Notes to Editors
The IMA/KPMG report "Taxation and the competitiveness of UK funds" made the following recommendations:
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Improved consultation and trust between the industry, HMRC and the FSA
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The industry and HMRC to promote better understanding of the industry
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Address the property fund conundrum
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Seriously consider the abolition of the SDRT Schedule 19 regime
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Allow authorised funds to trade without incurring a corporation tax charge
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Pending the ECJ decisions, consider the full tax exemption at fund level.
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