Platforms: it's the end for rebates

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Platforms have predicted the swift death of the rebate model following confirmation that HM Revenue & Customs (HMRC) will apply income tax to both unit and cash rebates.

In a surprise move, HMRC has brought forward its implementation date to just two weeks' time, on 6 April, though monies invested before this date will not be taxable. Most platforms expected enforcement to begin in 2014. The decision makes it very difficult for advisers to recommend rebates share classes after 6 April, said Novia CEO Bill Vasilieff. "It's the end for rebates - unit and cash," he said. "It's no surprise, but now they are definitive about it it's likely to be there will be no rebates in future. There will be an increased demand for clean share classes quite quickly." ...

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