More advice to be VAT exempt under latest HMRC rules

Under a new "gateway" principle, advice services will be deemed VAT exempt once the consumer enters the intermediation process, said HMRC in its revised draft guidance.  The entry concept marks a shift away from the ‘intent' principle set out in its October guidance under which an intention to execute a sale would determine exemption.  The latest draft rules suggest the overwhelming majority of adviser services will be exempt from the 20% sales tax. HMRC stressed the key will be the ability of advisers to provide evidence the intermediation process has been entered into with the cl...