The FSA and HMRC must address widespread confusion over when VAT is applicable to advice-giving post-RDR, industry experts argue.
Advisers and providers agree clarification is needed as fears grow consumers will be even less likely to pay a fee for advice if it is topped-up with VAT. Present rules state customers incur no VAT charges on intermediary advice if they purchase a product. However advisers are unsure how those rules will translate post-RDR when charges for product selling and advising are separated. Speaking at a live debate 'How will RDR affect you?', hosted by Legal & General (L&G), Informed Choice chief executive Nick Bamford, said: "It would be a good idea if HMRC and the FSA got together to m...
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