IMA supports government saving reforms

Savers will be "better off" off after next year’s budget when the government implements reforms to capital gains tax, according to the Investment Management Association (IMA).

The trade body of the UK’s asset management trade body believes the new system will give Brits new opportunities to reduce the tax they pay on savings.

Government proposals will simplify the system of capital gains tax for the account holder, says the IMA.

"Most savers too will be better off," said IMA chief executive Richard Saunders.

He continued: "The great majority of investors in funds will face a lower tax rate on their capital gains, and the minority who do not, will have the option of minimising their liability by judicious use of the annual exempt amount."

"And of course those who make sure they put the first £7,200 of savings each year into an ISA will face no capital gains tax at all on that money."

The asset management industry in the UK, whose members span investment vehicles such as authorised investment funds, pension funds and stocks and shares ISAs, is worth around £3,100 billion.