Alerts

Pre-Budget Report

Relevant Points for UK Fund Managers

December 15, 2009

The UK Government’s Pre-Budget Report, issued on 9 December 2009, contained two significant measures relevant to UK fund managers. The possible application of the bank payroll tax (or “bankers’ bonuses” tax) to UK fund managers is somewhat unclear. Preliminary indications are that the tax will not apply to employees of UK fund managers (even if employed in the asset management groups of banks), but this is not yet entirely certain. Urgent clarification as to the intended scope of the tax has been sought from HM Treasury and HM Revenue & Customs. But the general 0.5% increase in the rates of National Insurance Contributions (“NIC”) is a more straightforward measure, which will have a direct impact upon UK fund managers like most other UK taxpayers.