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Fund managers face £40m tax bill on Mifid II research

The Office for Budget Responsibility has put an estimate on the additional revenue that could be generated by applying VAT to investment research

Fund managers face £40m tax bill on Mifid II research

Fund managers look set to fail in their efforts to avoid a costly tax bill on the investment research they buy from banks after new European Union rules come into force in January.

In conjunction with the UK budget on Wednesday, the Office for Budget Responsibility, which analyses the public finances, estimated that taxing investment research under the revised Market in Financial Instruments Directive "is expected to raise around £40m a year".

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