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Skandia calls for CAR to be exempt from VAT

Customer agreed remuneration should be exempt from VAT, regardless of whether the adviser is paid a straight fee, a fee deduction or a commission from the product, says Skandia.

It adds that all tax inconsistencies must be removed if CAR is going to succeed and is urging the FSA to liaise with Government in order to provide clarity in this area.

Skandia says there is currently a danger that consumers could opt for a payment method that is not suitable for them simply because it has a more favourable VAT treatment.

Head of marketing Billy Mackay says: “There is a great deal of confusion and inconsistency in the way VAT is currently applied to payments being made for financial advice. In a period where simplification continues to be a common theme real benefits can be gained from simplifying the rules surrounding VAT and adviser remuneration.

“If this can be achieved by confirming that any form of CAR does not attract VAT, CAR can be a success. Getting it right can only further improve confidence and trust in the financial services sector.”


Building society would look at bids

Derbyshire Building Society’s new chief executive Graham Picken says the mutual will consider takeover bids but he would prefer it to remain independent.Picken, previously a non-executive director, last week replaced chief executive Peter Richardson who is retiring early after being in the role for eight years.The society was recently put on review for a possible […]

Indian summer

China seems to hog all the headlines, no doubt helped by hosting of the Olympic Games this year. In the investment world, there are now several funds that invest in China but, in contrast, there are very few funds that invest in a country which has just as much and arguably more potential – India. […]

JO Hambro reopens funds

JO Hambro Capital Management has reopened its offshore £474m continental European and £178m European funds after re-evaluating the capacity levels on the range.Both funds closed in March 2006 after reaching their initial joint capacity of £500m but managers Rod Marsden and Paul Wild now believe that level can be raised to £1.2bn.After back-testing the funds, […]

In Focus Ebola cover - thumbnail

White paper — In Focus: Ebola Virus Disease

Jelf Employee Benefits focuses on Ebola Virus Disease (EVD) and what this means for businesses with operations in West Africa. This will be of particular interest to those with employees either travelling to, or living within, West Africa, the area affected by the most catastrophic outbreak of Ebola to date.


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