HMT Launches Consultations On Asset Management Taxation

by Robert Lee, Tax-News.com, London

29 July 2008

Enhancing the competitiveness of the UK’s asset management industry is the focus of three consultation papers unveiled on Monday by the Economic Secretary to the Treasury, Kitty Ussher.

These consultations follow a package of measures announced in Budget 2008, designed to make the UK a more competitive location for asset management, and to advance the Government's City competitiveness agenda.

Ms Ussher commented:

“The Government is determined to ensure that the UK remains a competitive place to do business. The consultation papers published today are a step forward in improving the taxation environment for the asset management industry."

"We are determined to maintain momentum on improvements to the taxation of asset management to ensure the industry remains highly competitive in the face of new global challenges.”

The consultation papers proposed:

• The introduction of a direct tax exemption regime for UK Authorised Investment Funds;
• The removal of the tax as a barrier to Qualified Investor Schemes by replacing the substantial holding rule; and
• The adaptation of the tax rules for Investment Trust Companies to deliver tax efficient investment into interest bearing assets.

Recommended