By Huw Jones

LONDON (Reuters) -Britain’s finance ministry set out its stall on Thursday for reforming the 11 trillion pound ($15 trillion) investment funds sector following Brexit, saying it will simplify how the industry is taxed.

Britain is a global centre for managing funds, but many of them are listed in EU centres such as Luxembourg and Dublin and the government is under pressure to keep London’s financial hub globally competitive after being largely cut off from the bloc.

The government and the Financial Conduct Authority (FCA) will propose simplifying how funds are taxed, including a consultation on options to simply the VAT treatment of fund management fees, the ministry said.

There will also be reforms to expand the range of investment products available in Britain, including authorised fund structures that are permitted to distribute capital, and a new type of structure for professional investors.

The FCA will also consult on allowing the distribution of Long Term Asset Funds (LTAFs), a new type of fund, to a wider range of retail investors, and examine if there is a case for any further changes in how LTAFs are taxed.

“In taking forward these proposals, the government is clear that any tax reforms will be compatible with its robust approach on tax avoidance and evasion, and with the UK’s international commitments,” the ministry said.

“Similarly, the government is clear that any changes to regulation will be supportive of the UK’s commitment to uphold the highest standards of regulation, supervisory oversight, and investor protection,” the ministry added.

($1 = 0.7373 pounds)

(Reporting by Huw Jones Editing by Catherine Evans and Mark Potter)