The Investment Management Association has called on the Government to amend the proposals in the Chancellor's pre-budget report concerning fund taxation. The change proposed would mean that any fund with one or more investors holding 10% or more of the fund, would have to pay Capital Gains tax, and 30% corporation tax, compared with 20% of corporation tax and no capital gains tax, under the present laws. The original aim of the proposal was to stop institutional investors avoiding paying CGT by holding their money inside unit trusts and OEIC's.
Our view
More stealth tax !!!!