Nathan Hall, Investment Management Tax Partner at KPMG, said:
“The decision to abolish the Schedule 19 Stamp Duty Reserve Tax regime with effect from 1 April 2014 is a major headline grabber for the UK funds industry and signals that the Treasury is committed to enhancing the marketability of UK funds.
“The UK industry has been lobbying for the abolition of this tax for many years. The measure itself raises little tax but instead can cast a shadow over UK funds, making them look less competitive than funds in other EU jurisdictions.
“The step was a natural progression after exclusion of the new contractual schemes from Schedule 19 (subject to meeting anti-avoidance legislation). The announcement also comes as the European funds industry tries to model the impact of a proposed EU Financial Transaction Tax and it is hoped that the UK’s move will encourage European counterparts to consider suitable exemptions.”
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About KPMG:
KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with over 12,000 partners and staff. The UK firm recorded a turnover of £1.8 billion in the year ended September 2012. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 156 countries and have 152,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. KPMG International provides no client services.
