TISA warns SIPPs and wraps could take VAT hit

clock

SIPP and wrap providers who do not currently pay VAT on fees for their services could find they are actually liable, warns Malcolm Small, policy director at the Tax Incentivised Savings Association (TISA).

Currently, some SIPP providers do not pay VAT because insurance mediation and investment management are exempt from the tax. Some SIPP providers, as well as wraps and platforms, class themselves as providers of these services, rather than administrators. However, TISA's Small warns providers may have judged their VAT liability incorrectly and is seeking further confirmation from HMRC over what constitutes insurance mediation and investment management. TISA is putting together a committee to look into VAT liabilities. "For years we have assumed if something is to do with pensions...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

Why commercial property is much more than a self-invested pension asset

Why commercial property is much more than a self-invested pension asset

'It's perfectly understandable that clients can become emotionally invested in a commercial property'

Caitlin Southall
clock 08 August 2025 • 4 min read
TPO lays out three-year roadmap to tackle rising demand

TPO lays out three-year roadmap to tackle rising demand

The Pensions Ombudsman reveals plan to tackle challenge of demand outstripping capacity

Jonathan Stapleton
clock 31 July 2025 • 3 min read
Andrew Tully: The time is right for far-reaching state pension debate

Andrew Tully: The time is right for far-reaching state pension debate

Essential we get cross-party support to any changes, rather than get involved in any political ping-pong'

Andrew Tully
clock 21 July 2025 • 4 min read