Is this a good way to encourage saving?

REBATE TAX

Graham Dow, head of investment group relationships at Standard Life, discusses the implications of HM Revenue & Customs' move to tax fund rebates, and what it could means for fund and platform charging structures.

The announcement by HMRC that it believes fund rebates should be treated as taxable for income purposes has sparked an interesting debate. Debate is healthy, of course, and all views have to be respected, but I do find some of the stances being taken open to challenge – the first one being that of HMRC itself. A retail annual management charge is traditionally constructed with a fund management amount of typically 75bps, a platform charge of 25bps, and then trail commission of 50bps. The normal rebate of 50% was because there was no need for the trail commission or the platform cha...