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

Hargreaves Lansdown slashes account fees to 0.35% in charges overhaul

Hargreaves Lansdown slashes account fees to 0.35% in charges overhaul

Annual account charges to drop

Patrick Brusnahan
clock 26 January 2026 • 1 min read
AJ Bell platform AUM hits record £108bn as advised customer numbers rise

AJ Bell platform AUM hits record £108bn as advised customer numbers rise

Figures for the three months ended 31 December 2025

Jenna Brown
clock 22 January 2026 • 2 min read
Platforms in 2026: The good, the bad and the opportunity

Platforms in 2026: The good, the bad and the opportunity

'The optimist sees the donut. The pessimist sees the hole'

Steve Andrews
clock 16 January 2026 • 4 min read