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Press Release

Tuesday 31 July 2012


The Investment Management Association (IMA) is pleased that the HM Treasury and HMRC have adopted industry recommendations in the latest draft regulations on introducing Tax Transparent Funds into the UK.

The revised rules particularly reflect comments received in relation to limited partnerships*.

Julie Patterson, IMA Director of Authorised Funds and Tax, said:

“We welcome the Government's key objective of providing a competitive regime for UK-domiciled pooled funds and to consolidate the UK’s position as the largest asset management centre in Europe.

“We’re pleased to see that our comments have been taken on board and that the Government has adopted an open consultation approach.

“The IMA is working closely with officials to ensure that technical legal issues are properly resolved and is also lobbying in Brussels for the UCITS rules to be amended to ensure that existing funds can convert to master-feeder arrangements to achieve the efficiencies intended under UCITS IV.

“We look forward to the rules being finalised later this year.”

The UCITS IV Directive means that for the first time master funds can be based in the UK and feeder funds from other domiciles can hold units in those UK master funds. The new rules, enabling UK master funds to be tax transparent, will make them a very attractive option for feeder funds across the EU because of the UK’s extensive double taxation treaty network. This is a major advantage for the UK, which is too often understated.


For further information please contact:

Mona Patel, Head of Communications  
020 7831 0898 or 07834 089332

Navdeep Sidhu, Press Officer
020 7831 0898 or 07843 517 618

Christina Bridge, Press Assistant
020 7831 0898

Notes to Editors
*Two types of tax-transparent fund are to be introduced - a partnership scheme and a co-ownership scheme.  The creation of the partnership scheme is more challenging from a legislative perspective as partnerships have long been a feature of UK legislation and the provisions for the new form of TTF need to fit with the existing body of UK partnership law.  The co-ownership scheme is a new construct, so does not present the same type of technical legal challenges.

About the Investment Management Association

  • The IMA is the trade body for the UK's £3.9 trillion asset management industry (retail and institutional) which is one of the world's leading investment management centres.
  • Our role is to represent the interests of the asset management industry to government and regulators both in the UK and internationally.
  • The money our members manage is in a wide variety of investment vehicles including authorised investment funds, pension funds and stocks and shares ISAs.

Investment management association