The government is set to crack down on investment managers as part of a range of measures designed to tackle people who are “aggressively trying to avoid tax”.
In his Autumn Statement today, chancellor George Osborne announced that he would seek to “prevent the disguising of fee income by investment managers”.
In a statement released by HMRC, the government outlined its palns to target investment managers effective from April 6 2015.
It said it would introduce legislation to “ensure that sums which arise to investment fund managers for their services are charged to income tax.
The measure is designed to tackle “sums which arise to managers who have entered into arrangements involving partnerships or other transparent vehicles, but not sums linked to performance, often described as ‘carried interest’, nor returns which are exclusively from investments by partners”.
HMRC predicted the measure will generate £160m in 2016/2017, falling to £80m in the next year, then £65m and finally £55m in 2019/2020.
The announcement came amid a raft of measures designed to tackle tax avoidance, which included measures to prevent the avoidance of stamp duty in company takeovers and the avoidance of tax through “special purpose share schemes”.
