Government moves to tackle asset management taxation

The government has launched three consultation papers in a drive to enhance the competitiveness of the UK's asset management industry.

The papers have been launched by the Economic Secretary to the Treasury, Kitty Ussher MP, and follow measures announced in the 2008 Budget.

According to the government, the focus is to transform the UK into a more competitive location for asset management in addition to pushing the agenda for City competitiveness.

The proposals include 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 and the adaptation of the tax rules for investment trust companies to deliver tax-efficient investment into interest-bearing assets.

Kitty Ussher 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."

She stated that the government was keen on maintaining momentum on "improvements to the taxation of asset management to ensure the industry remains highly competitive in the face of new global challenges".