HMRC rules rebates to consumers are taxable

In a statement the revenue said the payments made to investors are annual payments and therefore subject to income tax. The ruling means payments are subject to basic rate income tax, which will be deducted from trail commission. Higher rate tax payers than have to account for additional tax payments via self assessment. HMRC said in a statement: "The payments made to investors are (in tax terminology) 'annual payments' and therefore subject to Income Tax in accordance with S683 Income Tax (Trading and Other Income) Act 2005. "A consequence of this is that the payers are under a...