Tax reform "good news" for those saving for retirement
The Treasury's consultation on an elective tax regime for authorised funds may benefit people thinking about nest egg savings, comments from the Investment Management Association (IMA) have suggested.
A reform on tax would bring authorised funds more in line with offshore funds and allow institutional investors to pay the correct tax sum on distributions, according to the IMA.
While individual taxpayers in the UK would not be affected by the reforms, people saving for retirement with Sipps, Isas and pension funds may potentially benefit from the reduced tax payable by institutional investors.
Julie Patterson, director of authorised funds and taxation at the association, said: "HMT's consultation is good news as the proposals would bring UK funds a significant step closer to allowing them to compete with offshore domiciles."
In other retirement finance news, Standard Life has launched an analysis tool that allows advisors to quickly test scenarios for those saving for retirement.
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