An industry trade association reported this week that UK hedge funds paid a record amount of taxes in 2014 – and that the industry paid over $2.5 billion more in taxes last year than in 2009.
The report comes from the Alternative Investment Management Association, a global hedge fund trade association.
From ValueWalk:
The report indicated that the UK Hedge Funds paid approximately £4 [$6.16] billion in taxes to the HM Revenue and Customs last year, an increase of around £1.7 [$2.63] billion in 2009.
According to AIMA, the growth of the hedge fund industry and the recent changes in the tax system in the United Kingdom was the primary reason behind the increase in tax contribution.
The association forecasted that the tax payments of UK hedge funds will increase further in 2015 due to the changes in partnership tax rules that were implemented last year.
According to AIMA, the £4 billion in tax payments by UK hedge funds last year could pay for approximately a dozen new NHS hospitals. The associations released the data amid claims that the hedge funds are exploiting loopholes or tax breaks to avoid paying stamp tax on UK share purchases.
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In a statement, AIMA CEO Jack Ingles said, “Despite some of the recent highly publicized claims, it is clear that the tax contribution of the 500 firms and 40,000 people working in the hedge fund sector in Britain has actually increased to record levels in recent years.”
Read the AIMA release here.
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