TISA warns SIPPs and wraps could take VAT hit

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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...

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