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PwC to pay Keydata income payments gross after verifying tax status

Administrator PricewaterhouseCoopers is to pay income payments in gross on some Keydata plans after it has satisfied itself of their tax position.

PwC says it will review each product in turn to determine the treatment as to withholding tax in conjunction with the underlying product providers.

PwC says there is no issue with cash Isa products where payments are being made in the normal course but the tax issues only apply to stocks and shares Isas.

In an update today it says: “Where we can obtain sufficient assurances that there is no requirement on the joint administrators to deduct tax then payments will be made gross. We are now undertaking this review and seeking the relevant confirmations as a matter of urgency. “

PwC says it is also seeking confirmations from the underlying product providers regarding the Isa eligibility of these products.

It says it has received HMRC confirmation that where there are sufficient assurances in this respect there will be no need for investors who hold these within an Isa wrapper to declare any payments they receive on their tax returns.

It says: “We are now seeking the relevant confirmations as a matter of urgency.

“Redemptions or maturity payments may include an income element and payments will be made when the tax treatment of the income element is clear.”

PwC says products where Keydata was only involved through the provision of back office services are unaffected.

PwC joint administrator and partner Dan Schwarzmann says: “We have been anxious to resume all income payments at the earliest opportunity and I am delighted we have now achieved a workable solution.

“I am grateful to the Keydata team who continue to work very hard with PwC to ensure that payments can be made on each product as soon as possible.”


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