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AIC: Leave investment trusts out of tax haven crackdown

<div>A MAJOR trade body has told Michael Foot, the mandarin running the government&rsquo;s review of UK tax havens, not to damage the offshore investment trust sector by recommending heavy-handed tax rules.&nbsp;<br />&nbsp;</div>
<div>The Association of Investment Companies (AIC) has said offshore funds contribute over &pound;300m a year to the UK economy and their domiciles should not be hit in any crackdown on illegal tax evasion. &nbsp;<br />&nbsp;</div>
<div>AIC director general Daniel Godfrey said: &ldquo;Without the offshore sector, the investment company sector as a whole would not have developed in the way it has.&rdquo;<br />&nbsp;</div>
<div>He added a third of investment trusts whose shares are listed on the stock market are based offshore and the sector&rsquo;s growth has been almost entirely offshore over the last five years. Overseas funds in areas like Guernsey and the Isle of Man raised &pound;16.5bn compared to &pound;2bn onshore over the period.&nbsp;<br />&nbsp;</div>
<div>Michael Foot&rsquo;s ongoing tax haven study, announced in last year&rsquo;s pre-Budget review is under increasing pressure to recommend a crackdown on offshore centres as the Treasury scrambles to boost revenues during the recession.</div>