The Tax Incentivised Savings Association has written to Treasury economic secretary Sajid Javid in an attempt to delay the implementation of HM Revenue & Customs’ taxation on platform rebates until April 2014.
HMRC announced in a briefing note last week that unwrapped rebates paid from 6 April will be taxed.
Tisa wrote to all platforms last week to assess the costs to the platform industry of making the changes, which it estimates at up to £25m.
Tisa then met with HMRC to discuss the difficulties of implementing the changes.
Tisa technical director Jeffrey Mushens says: “HMRC and the Treasury have been helpful with this but have made it clear that we would need ministerial consent to allow for a 12-month delay to rebate tax.
“A 12-month delay would allow most investments to be moved into clean share classes which would eliminate much of the problem. We hope Sajid Javid will listen to our concerns.”
Tisa says it has been informed by HMRC that the Government would recoup around £4m a year through the taxation of rebates.
An HMRC spokesman says: “We continue to talk to all stakeholders to address any questions they may have and are very grateful to all those in the industry who continue to engage with us in a open positive manner.”
Ascentric managing director Hugo Thorman says: “I think all platforms will be going ahead and making the required changes and while it would be a nice surprise to see a delay, I am not holding my breath.”
Capital Asset Management chief executive Alan Smith says: “This is a real issue for advisers around communicating and disclosing these tax issues to customers especially at a time when we are all attempting to bed in the RDR-related changes.”