For immediate release: Wednesday 21 March 2007

INVESTMENT MANAGEMENT ASSOCIATION RESPONDS TO 2007 BUDGET

Commenting on the increase in contribution levels of Individual Savings Accounts (ISAs) from £7,000 to £7,200 from the 2008 tax year, Richard Saunders, Chief Executive of the IMA, said:

"Taken with the longer term commitment to ISAs announced last year, this is a modest and welcome further piece of news. It is good to see the Government recognising the importance of ISAs in the UK savings market.  But a 3% increase after nine years is not much and we will look for more in the future."

Commenting on the taxation of authorised property investment funds, he added:

"We are pleased that the Government intends to sort out the tax treatment of authorised funds, to level the playing field with offshore vehicles and Real-estate Investment Trusts. This will, I hope, be the first fruit of our renewed dialogue with the Treasury in the wake of the report we commissioned from KPMG on tax and the location of funds.  I hope we will make further progress on some of the report's recommendations over the coming months."

-Ends-

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