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.”