The Investment Management Association (IMA) has welcomed the government's commitment in the Budget to consult with the industry on further improvements to the UK's fund tax regime.

Julie Patterson, director of authorised funds and tax at the IMA, said a lot of good work has gone into reforming the UK's fund taxation regime.

She explained, 'However, in the light of European regulatory developments, more needs to be done. We look forward to working with officials further to enhance the competitiveness of the UK funds industry.

'In order to compete more strongly for fund domicile business, the UK needs to offer taxâ‘transparent contractual vehicles and to abolish the fund-specific and very low tax-generating stamp duty reserve tax regime.

'The UK could then capitalise on the growth opportunities being created by the UCITS Directive, which enables master-feeder funds to be marketed across Europe, and the Alternative Investment Fund Managers Directive, which is leading non-EU funds to consider relocating to Europe.'