The government has launched a review into the UK funds regime in a bid to ensure the ongoing competitiveness and sustainability of the sector.
As an initial step in this review the government announced it would review the VAT charged on fund management fees.
It has also launched a consultation to gather evidence and explore the attractiveness of the UK as a location for the intermediate entities through which alternative funds hold fund assets.
The government said that despite the general attractiveness of the UK corporation tax system for holding company structures, there remain barriers to the establishment of these intermediate fund entities in the UK which do not exist in some other jurisdictions - leading to these entities being located outside the UK.
It added there was a view within the asset management industry these barriers could be addressed through "low-cost, targeted changes".
The government said it is prepared to make legislative changes in response to its consultation if it could be demonstrated they could bring "clear benefits" and facilitate the flow of capital, income and gains between investors and underlying investments via UK asset holding companies.
But it said it was not prepared to make changes that took significant amounts of existing UK taxable income or gains out of the scope of taxation in a way that was inconsistent with the principles of the existing tax system or created unprotected risks of abuse and avoidance.
Pension transfers will be red-flagged and blocked if savers have been approached via social media under stronger anti-scam plans set out by the government on Friday.
Still £133m higher than last year
Retail investors set to be restricted initially
It’s instinctive that clients want to avoid tax charges, and it’s no different when it comes to the lifetime allowance, but kneejerk reactions could result in more negative outcomes for the client. In this article Neil MacGillivray explains how advisers...
Proposals published today
Investors caught off guard by tech mogul's volte-face
The value of financial advice
Register now for PA's Sustainable Investment Festival: Key reasons to attend for advisers plus CPD certified
Interactive sessions and top tips