IMA: Labour fund tax plans would cost investors £145m a year

A Labour Party proposal to re-introduce Stamp Duty Reserve Tax (SDRT) for funds would cost retail investors £145m a year, the Investment Management Association (IMA) has claimed.

The government abolished Schedule 19 SDRT in its March Budget, but the Labour Party said this week the withdrawal was akin to "a loophole for hedge funds". In response, the IMA said a U-turn on the tax would drive ordinary UK citizens to invest through offshore financial centres. "In fact, this tax was paid by UK authorised funds, not hedge funds. Its re-introduction would impose a £145m annual cost on the ordinary savers, investors and pensioners, who are the beneficiaries of its abolition," said IMA chief executive Daniel Godfrey (pictured). "The IMA has conducted research with K...