State Street Global Advisors (SSgA) is moving its UK clients who have US indexation investments into tax-efficient vehicles, following an Anglo-US tax deal.

The tax treaty has eliminated a 15% withholding tax paid on income derived from certain investments made in the US. Pooled investment vehicles are now exempt from the charge but life funds were unsuccessful in qualifying for the tax break, despite intense lobbying by the Association of British Insurers and other interested parties.