IMA: Adviser charging will have 'perverse' tax implications

Speaking at the Personal Finance Society (PFS) conference in central London, IMA head of tax Steve Lynam said adviser charging could have important ramifications for consumers in terms of VAT, income tax and capital gains tax (CGT). "One perverse outcome of RDR is the tax inefficiencies for the end consumer," he told delegates. Lynam said the need for advisers to agree payment for ongoing services will create a scenario where it will be "difficult to argue" ongoing charges will not be subject to VAT. "Absent of regular transactions, it will be much more difficult to argue any ong...