IMA proposes 'local exemption' to bypass US tax hit

clock •

The Investment Management Association (IMA) has proposed a solution to help UK investors escape an "impossible" set of US tax rules due to come into force in 2013.

Last week the deadline passed for responses to the second notice from the Inland Revenue Service (IRS) on FATCA, or the Foreign Account Tax Compliance Act, designed to prevent offshore tax evasion.  Stephen Lynam, the head of tax at the IMA, said the association is lobbying for changes which would see funds that use local distributors exempt from the rules. He said the latest notice on FATCA from the IRS outlined a potential exemption for local banks. “We are saying, why limit it to banks that are only selling to locals? Why not widen it out?” The IMA’s submission to the IRS reads:...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Why managing retirement risk matters more than predicting markets

Why managing retirement risk matters more than predicting markets

'Helping clients understand, prepare for and navigate uncertainty'

Andy Brown
clock 12 November 2026 • 4 min read
Solving private markets risks 'almost mission impossible'

Solving private markets risks 'almost mission impossible'

Julius Baer’s Cyril Demaria-Bengochea speaks to Professional Adviser

Sophia Panayi
clock 12 November 2026 • 3 min read
Anthropic bankers preparing to increase IPO valuation to $1.5trn – reports

Anthropic bankers preparing to increase IPO valuation to $1.5trn – reports

Draft prospectus filed on Tuesday

Jack Roach
clock 11 November 2026 • 2 min read