TISA lobbies for rebate tax delay after revealing £15m cost to platforms

The Tax Incentivised Savings Association (TISA) is writing to the Treasury to ask for a one-year delay on the proposed rebate tax, after estimating the costs to the industry far outweigh the tax likely to be recouped.

As revealed by Investment Week, Her Majesty's Revenue & Customs (HMRC) is planning to instigate a tax on fund rebates paid to consumers in less than two weeks from today. However, research by TISA suggests the tax will only garner around £4m annually for the Revenue, a much lower amount than the platform industry will spend to implement the changes. TISA estimates in the first year alone, implementing the systems needed to pay the additional tax on fund rebates will cost £15m, the majority of which will be shouldered by platforms. TISA's technical director, Jeffrey Mushens, said HM...