View more on these topics

HMRC moves to quell tax fears on CAR

HM Revenue & Customs has confirmed that it does not expect advice fees taken out of a pension contract to attract tax penalties if customer-agreed remuneration is introduced.

Skandia called for clarification last week after warning that it could be an unintended consequence of the retail distribution review. It was worried that charges taken out of a pension under CAR could be classified as an unauthorised payment and attract a tax penalty.

An HMRC spokeswoman says: “I can confirm that HMRC held discussions with industry representative bodies in 2007 about how CAR was expected to work in relation to contributions to pension schemes.

“On the basis of the information presented during these discussions, HMRC did not have any concerns that genuinely commercial remuneration arrangements would create unauthorised payments.”

Facts and Figures Financial Planners managing director Simon Webster says: “If commission is okay and does not attract a tax penalty, you would assume that it would be the same with advice fees.”

Recommended

Absolute appetite

As the credit crunch continues to hit funds, investor demand for absolute return offerings has continued to soar.

Case for the defence

It should be made clear that at no stage have I accused Adam Samuel of showing any sympathy for the Pickerings and their legal battles against the Financial Ombudsman Service.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com