Hargreaves Lansdown clients lose out on £15m in rebates as HMRC wins legal battle

The victory for HMRC follows an appeal it launched in May last year against the decision of a tax tribunal, which had ruled in March 2018 that loyalty bonuses - such as those offered by HL - are not taxable. HL was the first to launch a legal challenge in March 2013 when HMRC decided rebates of annual charges, such as loyalty bonuses, paid on funds should be taxed as income and paid net of basic rate tax. HL's loyalty bonuses - discounts against the ongoing management charges - had been introduced to clients 15 years previously. HL took the case to the tax tribunal and in the Ma...