Vanguard steps up price war in time for ISA season

US passives giant Vanguard has cut prices on two of its core UK trackers, following the removal of stamp duty on funds.

The group is dropping the entry costs for investors in two of its UK equity funds, bringing the dilution levy applied to new investors down from 0.5% to 0.4%. The changes come after the Stamp Duty Reserve Tax (SDRT) rules were altered in the 2014 Budget. The group said: "Following the UK Government's announcement regarding the partial abolition of SDRT affecting UK unit trusts and open ended investment companies (OEICS), Vanguard has lowered the SDRT charge on the Vanguard UK Equity Index Fund, the Vanguard UK Equity Income Index Fund, and the Vanguard FTSE UK All-Share Index Unit Tru...