UK 'improving' pension fund status

The UK will be taken more seriously as a location for pension fund investments following recent tax changes, the Investment Management Association (IMA) suggests.

According to the IMA, new changes to the country's taxation system will allow pension fund managers to carry out investment transactions with more certainty concerning taxation.

Julie Patterson, Director of Authorised Funds and Tax at the IMA, says the association welcomes improved consultation between the government and the funding industry.

She commented: "For UK investors in particular, authorised funds can now offer a tax-efficient vehicle for exempt investors, such as pension funds, charities and Child Trust Fund, ISA and SIPP investors."

Ms Patterson adds that the UK will also become more attractive to foreign investors, following alterations to tax laws.

Business consultants PricewaterhouseCoopers yesterday urged UK pension fund trustees to improve their communication with sponsors in a bid to prevent funding costs from increasing.