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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