Call for 'fair' tax regime

A leading trade body for asset management has called for a "simple and fair" tax regime for those looking to invest overseas or in offshore funds.

The Investment Management Association also called for the ISA limit to be increased to £9,600.

And as part of its 2009 Budget submission, the group appealed for government to abolish the fund-specific Stamp Duty Reserve Tax regime.

Chancellor Alistair Darling was also urged to extend the 10 per cent dividend tax credit to dividends paid by offshore funds, a move which would help level the playing field between UK financial institutions and those based abroad.

The chief executive of the IMA, Richard Saunders, explained that it was of "paramount importance" that the UK funds industry remains competitive with other funding sources abroad.

"We must ensure the UK's tax regime is certain, predictable, simple and on par with its European counterparts," Saunders said.

"Otherwise, the UK will not be seen as an attractive fund domicile, which will potentially impact its position as a global centre for investment management.

"While we have made sound progress in a number of areas with the government, we still have some way to go, and we are looking to see a further step forward in the Budget."

A copy of IMA's Budget representations can be viewed here.