Investment trade body seeks abolition of taxes on UK funds

Investment trade body seeks abolition of taxes on UK funds

The abolition of taxes on UK investment funds is among sweeping post-Brexit reforms the government should consider to ensure the City of London thrives as a global centre for asset management, according to an influential trade body.

The Investment Association, which represents the UK's asset management industry, will call this week for rule changes to encourage the development of innovative new funds that will not suffer any tax disadvantages compared with directly competing European funds.

It also wants the government to consider moving to a full exempt tax regime for all UK funds to allow the City to compete more effectively against rival European fund hubs in Dublin and Luxembourg.

The reforms would advance prime minister Boris Johnson's ambitions for the UK to develop as a global champion of environmentally friendly "green“ investment strategies, as well as supporting fund administration jobs outside London, it said.

"Brexit is an important opportunity for the UK to define an innovative and responsive policy framework for investment funds. This will ensure that we continue to attract world-class firms to serve British and international customers, while also supporting the UK's ambition to become the global centre for responsible and sustainable investment,“ said Chris Cummings, chief executive of the association,