(Citywire) -- A group of fund managers are lobbying the Treasury to ensure there are no hefty tax bills in the wake of Brexit.
According to the Financial Times, the firms are seeking tax assurances if they are forced to repatriate billions of pounds of cash from Europe following the UK's exit from the single market.
The firms want to make sure there are no tax consequences if Europe alters the regulations policing the British funds industry.
The cash sums are vast, with estimates suggesting UK-based fund managers run close to $1 trillion (£730 billion) in funds domiciled in Ireland and Luxembourg,
An industry source close to the discussions told the Financial Times: “[We have been] talking to UK Treasury about bringing that money back . . . it would be relatively easy for the UK to say that [asset managers] who wants to move cash, here’s this expedited model.
'You could take Dublin and Luxembourg’s lunch. The UK can offer an easy way to switch back with no tax consequences. [The government] could use it in as a threat in negotiations. The Treasury recognises there is an opportunity,' he said.
The Treasury is believed to have no plan to take action at the moment, fearing a move could prove to be costly and provoke the EU as it is yet to make fundamental changes to UK asset management rules.