FundsNetwork piles in to beat HMRC rebate deadline

Fidelity FundsNetwork is to bring forward all rebate payments accrued in the current tax year to before 6 April, in a bid to avoid income tax levied by HM Revenue & Customs (HMRC).

HMRC announced in Monday unit and cash rebates would be subject to income tax - between 20% and 50% - beginning in two weeks' time, a year earlier than planned. In guidance to advisers, the platform said while it was "disappointed" at the timeframe HMRC had set out, the rules provided a number of opportunities for clients to avoid the tax. "Based on our current understanding, any discount of initial charges is not affected," the statement said. "We are also aiming to ensure that any payments accrued in this current tax year will be paid before the 5 April 2013. Where tax is payable...