Taxing times for rebates

Her Majesty’s Revenue & Customs (HMRC) isn’t renowned for making show-stopping announcements. But in deciding this week to tax both cash and unit rebates, it has made any legislation in the Financial Services Authority’s (FSA’s) much-awaited final platforms paper, due next month, almost obsolete. Platforms also expected a year to deal with any changes outlined by HMRC. Instead they’ll have just two weeks. Rebate taxing will begin on 6 April. Short notice Ed Dymott, head of business development at Fidelity, expressed surprise at the timescale. “We’re disappointed that HMRC has ...