Anorak | Dear Miliboy: It Ain’t A Tax Cut For Hedge Funds

Dear Miliboy: It Ain’t A Tax Cut For Hedge Funds

by | 18th, December 2013

WE have Ed Miliboy whining about a tax cut for hedge funds :

Ed Miliband, the Labour leader, in September suggested that Labour would reinstate the tax, describing the Coalition move as a “tax cut on hedge funds”.

Hmm, wonder what this could be?

The Treasury has promised to abolish “Schedule 19” stamp duty reserve tax, which applies to some investments sold by funds.

Err, Schedule 19 doesn’t apply to hedge funds. It applies to unit trusts: and no, unit trusts are not hedge funds.

But wait, there’s more!

A tax cut for City fund managers will leave the typical worker £11,000 better off on retirement, the Treasury has said.

If the tax cut will leave pensioners better off then the original tax isn’t on fund managers, is it, it’s on pensioners.

Think it through: the absence of the tax makes pensioners better off. Therefore the presence of the tax must make pensioners worse off. So, who, originally, is paying the tax? The fund managers (or the

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Posted: 18th, December 2013 | In: Money, Politicians Comment | Follow the Comments on our RSS feed: RSS 2.0 | TrackBack | Permalink