Teresa Owusu-Adjei, asset management tax leader, PricewaterhouseCoopers LLP, comments on the proposed bank levy, and on the Government’s proposals for consultation on issues impacting the competitiveness of the UK in the asset management sector.
We are concerned that one of the most difficult issues associated with the bank levy will be defining which institutions should be subject to the charge. The experience with the Bank Payroll Tax demonstrated that defining what is a ‘bank’ and ‘banking type activities’ is not straightforward and asset managers will be keen to ensure that they are not inappropriately subjected to levies that are intended for banks.
We welcome the Government’s commitment to consult with the industry on a range of issues to improve the competitiveness of the UK in the asset management sector.
Over the next couple of years, the implementation of the Alternatives Investment Fund (AIFMD) and the UCITS IV Directives will fundamentally change the way in which asset managers operate within Europe. To be regarded as a location to domicile funds, it is important for the UK to be perceived by asset managers and investors as having a competitive tax regime for its fund structures.
