Brexit gives Luxembourg €50m tax boost

Asset managers including M&G and Columbia Threadneedle moved more than €50bn in fund assets from the UK to Luxembourg to protect their clients’ interests in the wake of the UK’s vote to leave the EU.

Luxembourg levies a subscription tax – taxe d’abonnement – of 5 basis points on retail funds and 1bp for institutional shares classes, which is borne by investors.

Fitz Partners, a specialist fee research firm, says subscription tax paid by the largest firms that transferred funds to Luxembourg totals €52.4m over the past three years.

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