View more on these topics

VAT puzzle on defined payments

HM Customs & Excise says it cannot give an answer on whether the FSA&#39s defined-payment system will escape VAT until the system starts.

VAT charged on defined payments would mean increased costs, making consumers less likely to seek independent advice.

LIA public affairs director John Ellis describes the FSA fee arrangement propo-sals as a “fiddle”, raising fears that IFAs agreeing a fee for advice to be paid out of commission will have to charge clients VAT.

Under current rules, VAT is chargeable on advice but not on intermediary services. Where there is a combination of both, cases are assessed on which is the greater.

The FSA refuses to confirm if it received an assurance from Customs & Excise that defined payments will not attract VAT.

A Customs & Excise spokeswoman says: “We cannot say, yes, it attracts VAT and we cannot say no. We would assess the case on its merits. Guidelines would be drawn up when it is implemented.”

Recommended

Autif needs to polish its performance

Autif has dragged the topic of past performance back to the top of the agenda.Proudly wielding its 32-page report, compiled by Charles River Associates, it condemned the FSA&#39s decision to exclude performance data from its comparative tables and dec- lared it had evidence to prove that performance is indeed relevant.But as the hype subsi-ded and […]

Sun Bank – Hindsight 2 Year Fixed

Fixed term: until 1/3/2004Fixed rate: up to 75% of valuation with an extended tie-in period – 3.24%, up to 90% of valuation with an extended tie-in period – 3.74%, up to 75% of valuation with no extended tie-in period – 4.74%, up to 90% of valuation with no extended tie-in period – 5.24%Minimum loan: £25,001Maximum […]

Treasury &#39tinkering&#39at annuity changes

The Treasury has issued its long-awaited annuity consultation paper, proposing allowing annuity transfers and the creation of a limited term product.Compulsory purchase at 75 remains and there are no changes to the rules prohib-iting handing down benefits to family other than spouses on death.Treasury Economic Secretary Ruth Kelly says that the Government plans to allow […]

Universal Building Society – 3 Year Discount

Discounted term: 3 yearsDiscount: 3% in year one, 2% in year two, 1% in year three Payable rate: 2.8% in year one, 3.8% in year two, 4.8% in year threeMinimum loan: £20,000Maximum loan: £350,000Income multiples: 3 times principal income, or 2.5 times joint incomeArrangement fee: £295Redemption fee: 6% of advance in first four yearsConditions: compulsory […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment