HM TREASURY News
Release (PN 82/08) issued by The Government News Network on 28 July 2008
Enhancing the
competitiveness of the UK's asset management industry is the
focus of three consultation papers announced today by the Economic
Secretary to the Treasury, Kitty Ussher MP. 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.
Kitty Ussher MP said:
"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 will propose the:
* introduction of a
direct tax exemption regime for UK Authorised Investment
Funds;
* removal of the tax as a barrier to Qualified Investor
Schemes by replacing the substantial holding rule; and
*
adaptation of the tax rules for Investment Trust Companies to
deliver tax efficient investment into interest bearing assets.
Notes for Editors
1. The UK's asset management industry
is important to the UK's economy with UK-based firms managing
£3.8 trillion of assets and employing over 25,000 people.
2. The Government has committed to work with the sector to
enhance the environment for UK asset management. Work undertaken
has included improving understanding between the asset management
sector and the Government particularly on tax issues, launching a
new tax regime for Property Authorised Investment Funds and
allowing electronic transfer of ownership of shares and units in
investment funds.
3. As part of the ongoing work in this sector, Budget 2008
announced a package of measures for further improvements to
enhance taxation for asset management. The Government today has
published three consultation papers that build upon those Budget
announcements and welcomes industry's views. The papers
propose:
* introduction of a direct tax exemption regime for
UK Authorised Investment Funds;
* removal of the tax as a
barrier to Qualified Investor Schemes by replacing the substantial
holding rule; and
* adaptation of the tax rules for Investment
Trust Companies to deliver tax efficient investment into interest
bearing assets.
4. The consultations can be found on the Treasury's website:
* Authorised Investment Funds:
http://www.hm-treasury.gov.uk/consultations_and_legislation/tax_elected_funds/consult_taxelected_funds.cfm
* Qualified Investor Schemes
http://www.hm-treasury.gov.uk/consultations_and_legislation/qualified_investor_scheme/consult_qualifiedinvestor_scheme.cfm
* Investment Trust Companies
http://www.hm-treasury.gov.uk/consultations_and_legislation/investment_trust_companies/consult_investmenttrust_companies.cfm
5. Non-media enquiries should be addressed to the Treasury
Correspondence and Enquiry Unit on 020 7270 4558 or by e-mail to public.enquiries@hm-treasury.gov.uk
6. This press release and other Treasury publications and
information are available on the HM Treasury website. If you would
like Treasury press releases to be sent to you automatically by
email you can subscribe to this service from the press release
site on the website.