IFAs unable to evidence VAT exemption will be charged

The guidance confirms the previously-known circumstances under which VAT will be exempt on an adviser charging arrangement post RDR. These rules state that, as long as a customer is seeking the arrangement of a retail investment product and the adviser acts between provider and client, all other steps of the advice process (see 'six steps' at bottom of page) will be VAT exempt. But in a new paragraph not included in its draft guidance, HMRC states an adviser "will need to keep sufficient evidence to support the tax treatment applied to the services supplied". If an adviser is unabl...