HMRC scraps VAT plans for platform fees

Platform fees will remain VAT exempt, according to guidance released by HM Revenue and Customs.

HMRC had consulted on whether to impose VAT on platform fees, but has now relented on the issue, as long as the fees are charged in connection to the primary services provided by platforms. These primary services are defined as: • The aggregation of the investors' capital to bulk purchase securities in funds and other investment products. • The recording of the transactions and holdings, • The holding of the investments in trust as nominee, and • The disaggregation of the income from the holdings, including realisation of the assets, in accordance with the individual beneficiaries...