Capita writes to Arch cru clients over redress blunder

Capita's administration arm has written to a number of Arch cru investors asking them to return money from the redress scheme, after the payouts breached tax rules.

Capita SIP Services has written to SIPP clients who invested in the Arch cru funds via Scottish Equitable to inform them it paid them their redress money in such a way as to expose them to a 40% higher rate tax charge, after breaching pension scheme rules. Capita has asked the clients to send back the payment - derived from the £54m compensation scheme set up by the Financial Conduct Authority and financed by Capita Financial Managers Limited, BNY Mellon Trust & Depositary, and HSBC - or else pay the tax charge. It said in a letter sent to clients: "When we originally wrote to you we ...