Stephen Mohan, head of UK & Ireland at Allfunds Bank, has reignited conversations with fund managers and clients about ‘0%' share classes, amid potential changes to VAT rules.
According to the former managing director at Cofunds, the only obstacle standing in the way of the 0% charging structure was the threat fund managers would have to pay VAT on charges to platforms, which would have added an extra 20% to these fees. However, the latest rhetoric from HMRC suggests these plans will be dropped, allowing fund managers to go ahead with 0% share classes without extra costs attached. While elements of the platform industry have so far opted to push for super clean share classes from fund groups in order to preserve attractive legacy deals, the early signs are ...
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