HMRC and ABI issue adviser guide on VAT liability

HMRC views the provision of advice as taxable. Where a customer wants advice only, including investment advice, VAT will be due. However no VAT is payable for simply arranging the purchase of a financial product, described by the HMRC and ABI guidance as "intermediary services". "The provision of intermediary services for arranging most financial and insurance products is exempt from VAT", it states. Its definition of an intermediary service is one which brings together a party seeking a financial service with one which provides them, acts between those parties, and carries out wor...