If you are uncertain about the correct VAT treatment of your services, it is more important than ever that you obtain advice from your compliance or professional tax adviser.
Simon Thomas is head of regulatory policy of Tenet Group
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Key points
– Many financial advisers are still seeking clarification about the VAT treatment of their charges for advising and arranging a discretionary investment management service.
– The judgement reached in the HMRC v Bloo sbury case managed to clarify that a ‘rebalancing’ advisory service is classified as mediation and, as a consequence, is exempt from VAT
– The HMRC’s argument was that the IFA was merely giving advice, which is taxable.
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