ABI lobbies for VAT-free pension fees

The ABI and pension providers have been lobbying Customs & Excise for fees under stakeholder to be exempt from VAT. The Government agreed late last year to allow for a separate charge to cover the cost of advice above 1%. Fee-based advice must be drawn up as a separate contract to the pension scheme in stakeholder and it is subject to VAT. The ABI is still awaiting a decision from the Government on whether this payment can be made exempt. Bridget Moss, pensions manager at the ABI, said: "We have had a meeting with the relevant authorities and it is still under discussion. When additional ...