BUDGET: IMA WELCOMES MEASURES TO ENHANCE UK FUNDS INDUSTRY

The Investment Management Association (IMA) welcomes today's Budget announcements which will further enhance the UK's competitiveness as a domicile for authorised investment funds.  Specifically, the Government announced:

• The launch of a Tax Elected Funds regime - this will allow UK authorised investment funds to be marketed competitively to UK investors and worldwide;
• Legislative change to clarify that transactions by UK authorised investment funds and equivalent offshore funds will be taxed as investing not trading;
• A reformed Offshore Funds Regime to come into effect from 1 December 2009. This will provide a simple and fair approach to the taxation of UK investors in offshore funds;
• Extension of the dividend tax credit to investors in offshore funds with effect from today, so that there is equal treatment between onshore and offshore equity and bond funds; and
• Confirmation that foreign dividends will generally be exempt from 1 July 2009.

Commenting, Julie Patterson, Director of Taxation and Authorised Funds at IMA, said:

"IMA has long been campaigning on issues impacting the competitiveness of the UK funds industry and the need for fair, non-discriminatory treatment of offshore investments. Today's announcements are a reflection of our constructive dialogue with the authorities, which has allowed us to develop a programme of measures to enhance the competitiveness of the UK funds industry."

-ENDS-

About Investment Management Association (IMA)
IMA is the trade body for the UK's £3.4 trillion asset management industry.The money its members manage is in a wide variety of investment vehicles including authorised investment funds, pension funds and stocks and shares ISAs. Its role is to represent the industry and promote high standards.

For further information, please contact:
Noreen Shah, Press Officer, IMA, 0207 831 0898
Mona Patel, Head of Communications, IMA, 07834 089332