HMRC proposes keeping transaction arrangement VAT-free post-RDR

In draft guidance issued today, HMRC confirmed where clients wish to receive advice-only led services - such as general financial advice, tax planning and financial health checks - the service will be subject to the 20% sales tax. But where advisers arrange transactions for clients the service will be exempt from VAT, it said. This includes gathering client information, carrying out research, advising customers on the best investment option and arranging product sales. Advisers will have to provide evidence the customer has agreed to the adviser arranging transactions. This could take...