Rebate tax 'fundamental breach of market freedom'

clock

HM Revenue & Customs's (HMRC's) decision to tax unit and cash rebates could violate UK case law on competition, according to a platform consultancy.

The move means platforms will be forced abandon negotiating individual discounts with managers, although a number of larger platforms, including Standard Life, Skandia and Axa Elevate, are lobbying fund groups for cheaper "super clean" share classes. Irrespective of whether platforms are able to negotiate multiple clean share classes, HMRC's decision was "a fundamental breach of freedom of market", said AdviserAsset director Colin Turton (pictured). "It feels like we are going back in time," he said. "The only challenge I can see is from TISA who are lobbying for a delay. [It's] a fun...

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

Ross Allan: The quiet strength behind great client outcomes

Ross Allan: The quiet strength behind great client outcomes

Blocking out the noise and focusing on delivery

Ross Allan
clock 08 July 2025 • 4 min read
Aberdeen's Kenny: 'We are not just going to switch Elevate off'

Aberdeen's Kenny: 'We are not just going to switch Elevate off'

Admits adviser communication on Elevate has been lacking

Jenna Brown
clock 10 June 2025 • 4 min read
Schroders UK Platform Awards 2025: Entry closing date fast approaching!

Schroders UK Platform Awards 2025: Entry closing date fast approaching!

Shortlists will be published in early July

Professional Adviser
clock 05 June 2025 • 1 min read