Investment - Articles - IMA welcomes progress on tax-transparent funds

 Speaking at the Investment Management Association (IMA) Chairman's Dinner last night, Financial Secretary to the Treasury Mark Hoban MP announced that the Government will introduce UK authorised tax-transparent funds via secondary legislation.

 The new form of fund will be available from 2012 as previously announced, but the timetable will now allow for a more efficient and in-depth consultation with the industry.*

 Responding to the Treasury's announcement, Julie Patterson, Director of Authorised Funds and Tax at the IMA, said:

 "We welcome the use of secondary rather than primary legislation to introduce this new form of authorised fund. It will enable a more efficient consultation process with the industry on the technical details of the regime.  Secondary legislation will also allow for refinements to be made to the rules should any snagging points come to light when the new funds are launched from 2012.

 "Instead of an initial consultation in June on the framework and the usual debates on the draft Finance Bill, the public consultation process will now happen in the autumn and on the basis of draft rules. Meanwhile, the IMA will continue to work closely with the Government to ensure the new tax-transparent vehicle is fit for purpose.

 "The Treasury's steps further to improve the competitiveness of the UK fund and asset management industry are very welcome."