Standard Life has agreed to pay all its customers’ platform rebate tax liabilities for 2013.
The move sees Standard pay all liabilities for the rest of the year relating to rebates on both Standard Life Wrap and FundZone.
Standard says it will pay HM Revenue & Customs directly which will mean clients do not have to include the income in tax returns and avoid the added paperwork.
Standard Life head of platform propositions David Tiller says: “We disagree with HMRC’s analysis of the relevant legislation and believe customers and advisers should have been given time to make alternative arrangements.
“In order to reduce the administrative implications for advisers, we have agreed a method of calculation with HMRC, based on the volume of rebates received by our platforms in 2013, which means we do not need advisers to tell us what their clients’ tax position is.
“This allows until the end of the year to move clients to clean and super clean share classes, eliminating any potential rebate tax liability in the future.”
HMRC confirmed in March that all platform rebates would be taxed from 6 April.
Last month, Standard Life Wrap confirmed a move to a clean share class only model from the beginning of the 2014/15 tax year following the HMRC announcement.