PFS VAT guidance must be revised - Intelligent Pensions

Steve Patterson [pictured], managing director of Intelligent Pensions, said the problem lies in VAT charging on on-going services, such as a client paying a fee for an adviser's recommendation but taking no further action. PFS guidance said general financial advice is taxable and intermediation on product sales is VAT exempt. An adviser's annual charge is likely to be a VAT-able supply if the client does not buy a product except for cases where an investor cancelled purchase. "This seems nonsensical and quite impractical to implement" said Steve Patterson. He added: "If an adviser'...