James Hay sounds trail commission tax warning

Jenna Towler
clock

Advisers and clients could get "caught out" by the new tax treatment of payment of trail commission, according to James Hay Partnership.

The provider said closer inspection of draft guidance and a technical note for tax professionals revealed that if the rebate agreement is between the adviser and the client, then the adviser is responsible for deducting the tax and the reporting - not the platform or provider. Neil MacGillivray, head of technical support unit, James Hay Partnership said: "There is no doubt the FSA consultative paper CP12/12 has been the catalyst for this change in stance by HMRC. The potential outcome is likely to be a quick rethink by many providers and a speedy move to clean funds for all wrappers. ...

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 Wrap/platforms

Platform innovation: Terry Huddart on 7IM's Online Reporting

Platform innovation: Terry Huddart on 7IM's Online Reporting

'It's a fundamental upgrade to the client area of the platform'

Terry Huddart
clock 24 October 2025 • 6 min read
AJ Bell reports record platform AUM of £103bn

AJ Bell reports record platform AUM of £103bn

AUM and customer numbers both up 19% in the year

Jenna Brown
clock 23 October 2025 • 3 min read
Private markets for the mass affluent: How wealth platforms can scale access

Private markets for the mass affluent: How wealth platforms can scale access

‘The opportunity is clear’

Borja Largo
clock 15 October 2025 • 5 min read