Sanlam UK will cease charging VAT on its model portfolio services (MPS), effective from 1
April.The change will apply to all MPS where there is no personalisation at an investor level. The Active, Index and Socially Responsible strategies are among the models impacted by the change.
Sanlam aims to implement the change across multiple wrap and fund supermarket platforms from 1 April, but warned there might be delays as for some platforms implementing the changes may prove challenging from an operational perspective.
Sanlam said in a statement it is working with all of its distribution partner firms to expedite the move.
Copia Capital removes VAT from MPS range
Sanlam will brief individual IFA firms over the coming days and weeks in respect of the specific timelines for the changes, depending on which platforms assets are held.
The decision to remove VAT follows industry discussions with HMRC about the requirement to add VAT to MPS products.
Competitors like Brewin Dolphin, Tilney Smith & Williamson and Investec have also removed VAT from their model portfolios, following HMRC's indication that it is not required.
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