View more on these topics

PwC billed £12.7m for non-Isa compliant Keydata plans

Keydata administrator PricewaterhouseCoopers has been issued a tax claim of £12.7m by HM Revenue & Customs for non-Isa compliant plans.

The figure is more than twice the £5m that was estimated when Keydata was pushed into administration by the FSA in June.

At the end of July PwC said Keydata or Lifemark products invested with Lifemark S.A have been identified as non Isa eligible and therefore could incur tax liabilities.

It said income for these products, of which over £350m is invested, will be paid gross and clients will need to include all income paid by the administrators on their personal income tax return.

Meanwhile, PwC said it would pay income payments in gross on other suspended Keydata plans after it had satisfied itself that they were Isa eligible.

It said it would review all products that were sold through Isas in turn to determine their status in conjunction with the underlying product providers.

Schwarzmann says PwC failed to gain an indemnity from all the providers to process payments and has now agreed a procedure to satisfy itself that it can satisfy HMRC without incurring any tax liabilities.

He expects to have completed the review of 160 arrangements in September when income will flow for all investors.

He says: “Once we were clear what we needed from the Revenue, we went back to the product providers to request an indemnity so we could make income payments and all of them bar one said no.

“We have now agreed a procedure to satisfy ourselves that we can satisfy the Revenue and have started working through it.

“There’s about 160 to work through and we have already agreed now on over 20 to be processed.”

Recommended

FSA says bank pay code is tough enough

The FSA has insisted its remuneration code for bankers is tougher than March’s draft code despite claims that it has bowed to pressure from the banking industry.

Natixis video: Making smarter use of asset classes

Content supplied by Natixis Global Asset Management This video from Natixis Global Asset Management focuses on Active Share. One strategy for the smarter use of equity investments is ensuring you get what you pay for. According to the company, looking at Active Share can give you a better perspective on where performance comes from. Active […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. I read all comments re keydata ,but i don’t see much movement regarding the SIB s 1 2 3, all i see is wait till november is out , idon’t want to wait till then,, i want to know ,what is going on ,iwant to be kept informed , about my investment ,i want to know if i will get my money back, i want to know if the fscs is going to declare keydata in default ,and if so when will they compensate me,, i don’t want much, just information please,,,

Leave a comment