The Financial Services Compensation Scheme (FSCS) and self-invested personal pension (SIPP) provider Standard Life have worked out a deal with the taxman over the tax status of recoveries related to ARM Asset Backed Securities.
The FSCS said it had received guidance from HM Revenue & Customs (HMRC) relating to the payment of Arm-related recoveries made directly to Standard Life SIPP members indicating the payments would be treated as an unauthorised payment and liable to penalties. Recoveries are any amounts received or recovered by FSCS, for example through legal proceedings, in relation to failed investments held in a SIPP following payment of compensation by FSCS. The FSCS said to ensure SIPP members do not suffer an adverse outcome it worked with Standard Life to propose an alternative approach to HMRC....
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