On 10 September, AIMA submitted representation to HM Treasury ahead of the UK Autumn Budget on 30 October 2024.  AIMA argues that the tax system as it applies to businesses in general and asset management businesses in particular has become far too complicated.

Furthermore, the recent HM Treasury should ensure that any reforms to the treatment of carried interest do not undermine the competitiveness of the UK as an asset management hub and a destination for investment.

The government should remove the additional constraints which apply to asset management businesses in order to mobilise private capital to invest in the UK and maintain the competitiveness of the UK asset management sector.  Additionally, there are other priorities that HM Treasury should consider:

• Reforming the UK securitisation framework to boost SME lending while also helping to channel capital into large scale infrastructure, energy and defence projects.
• Reducing the reporting burden on UK asset management firms to focus on the most material data points and remove unnecessary duplications.  This will improve the competitiveness of the UK without undermining the effectiveness of regulators to supervise the sector.
• Ceasing the use of terms like Non-Bank Financial Intermediation and ‘shadow banking’, which capture a wide range of financial institutions carrying out a range of activities.  We believe a more constructive and refined approach is needed to ensure that any discussion on NBFI is evidence-based and that any regulation of the sector is necessary and proportionate.

For further information, please contact Paul Hale, Managing Director, Global Head of Tax Affairs ([email protected]) or Nicholas Smith, Managing Director, Private Credit ([email protected]).