View more on these topics

PIMS: HMRC U-turned over rebate tax decision

Tiller-David-Standard-Life-2013-700x450.jpg

Standard Life says HM Revenue & Customs changed its mind about the tax treatment of platform rebates after indicating in autumn it did not see them as taxable.

In March, HMRC confirmed platform rebates to customers with unwrapped assets would be taxed from 6 April.

Speaking at PIMS on board the Aurora last week, Standard Life head of platform propositions David Tiller said six months prior to this HMRC said rebates were not taxable.

Tiller said: “HMRC changed its view. Six months earlier it had a different opinion and that changed. No prudent business would have assumed that rebates would be taxed, having heard the contrary view six months earlier.”

Tiller said Standard Life will continue to lobby in an attempt to get the interpretation of rebates reversed.

He said: “We have to stand up for what is in our clients’ best interests. It is still being challenged, we are still lobbying hard. I think we have to defend our adviser and client interests on this and lobby as hard as we can.”

Money Marketing revealed last month the Tax Incentivised Savings Association failed in its bid to have the tax on rebates delayed by 12 months until 2014.

Hargreaves Lansdown is currently consulting its legal team over whether it can challenge HMRC on the tax ruling.

Head of advice Danny Cox says: “We are currently in discussions with our legal representatives and seeing whether or not we can take anything forward although we have not yet made any decisions.”

Recommended

2

PIMS: Trail will cease by 2016

IFG Financial Services says all trail payments to advisers will be switched off by the beginning of 2016. Speaking at PIMS on board the Aurora last week, IFG FS chief executive Tim Sargisson said the firm has told its advisers to start planning for life without trail within three years of RDR implementation. Sargisson said: […]

MPs to consider if Help to Buy MIG could extend to self-builders

A group of MPs will explore whether it is possible to include self-build projects in the Government’s Help to Buy mortgage indemnity guarantee scheme as part of efforts to make the sector more accessible. An all-party parliamentary group for self-build has been set up to explore how to boost the number of self-build projects in […]

Cost of 95% LTV mortgages on the rise

The cost of 95 per cent loan-to-value two-year fixed products has risen over the last 18 months despite Government attempts to boost lending to those with small deposits. Figures from Moneyfacts show borrowers with a 5 per cent deposit are paying 14 basis points more today for a 95 per cent LTV two-year fixed rate on […]

2015: a divergence in economic policy?

As the US continues to confound growth expectations and the eurozone’s ‘will they, won’t they’ saga has finally concluded, what are the implications for global markets? James Dowey, Neptune’s chief economist, puts forward his outlook for 2015 and the key considerations for investors.

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