VAT exemption key to CAR success - Skandia

In its response to the retail distribution review, Skandia says there is a danger consumers could opt for an unsuitable remuneration method simply because it has a more favourable VAT treatment. It urges the FSA to provide clarity in this area and liaise with the Government to ensure fees for financial advice do not attract VAT. Skandia says the “inconsistencies” surrounding VAT cause confusion for both advisers and consumers and will hamper the introduction of a positive CAR regime. If fees are excluded from VAT, Skandia says CAR can be a success and its principles can be applied acr...