Keydata payouts may trigger tax hit for SIPP clients

Providers says FSCS payments made directly to the investor, such as via a cheque, may trigger punitive tax charges. Currently, HMRC rules state investors can choose to receive a compensation payment individually or have it paid straight into their SIPP. Alternatively, money is paid into the SIPP without consultation. The FSCS says payment methods depend on who the SIPP trustee is. However, Gregory Kingston (pictured), head of marketing at Suffolk Life, says: "The FSCS is struggling with directing its payments, and seems to be inconsistent with its approach. "Claims have been mad...