Last week Her Majesty's Revenue & Customs (HMRC) confirmed the widely expected decision it will be taxing fund rebates paid to consumers, as it considers such payments to be income.
The real news was HMRC’s timescale. Despite lobbying from major fund groups and platforms, it has opted to instigate the tax change in a little under one week from now. The ruling is no doubt causing chaos behind the scenes at some of the country’s largest platforms. HMRC has opted to give groups the option to estimate the tax owed on rebates to consumers for the next eight months while they get their systems up to speed, but that will be scant consolation. The most negative outcome - and one that has not been talked about yet - will be the impact on re-registration. Some of the la...
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