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Govt exempts offshore investors from platform rebate tax

Sajid Javid 480

The Government has moved to exempt offshore investors from paying tax on platform rebates.

From 6 April, all platform rebates to investors have been taxable following an HMRC ruling in March.

But in a written ministerial statement yesterday, Treasury economic secretary Sajid Javid said taxing offshore investors could affect the UK’s competitiveness.

The Government has immediately reversed the tax charge for offshore investors and launched a four week consultation to set out detailed new rules.

Javid said offshore investors do not normally pay tax on interest or equity positions and rebates are similar to distribution payments.

He said: “This difference could have a profoundly negative impact on the international competitiveness on the UK funds industry.

“Imposing a requirement to withhold tax would therefore be at odds with the Government’s investment management strategy, published at Budget 2013.

“The Government is determined to improve the UK’s competitive position as a centre for investment management.”

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. Sing along.... 22nd May 2013 at 3:52 pm

    Make it us as you go along, doo dah, doo dah
    Make it up as you go along, doo dah doo dah dey

    Sigh.

  2. Dothese people ever think things through or consult with people who actually know and understand our industry? Webb is as bad with his off the cuff pensions rules and I know for a fact that ministers and civil servants discussed auto enrolement pensions advice being provided by IFA’s for ‘free’ a few years back (Labour government)!

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