The decision to remove VAT follows industry discussions with HMRC
Brooks Macdonald has stopped applying VAT on the group’s managed portfolio service (MPS) from 1 January.
The change applies to the firm’s custody MPS and those held on third-party platforms.
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A spokesperson for Brooks Macdonald said: “Following guidance from HM Revenue & Customs (HMRC), we are delighted to be able to remove VAT from our MPS and are working with our platform partners to remove it at the earliest opportunity.”
The decision to remove VAT follows industry discussions with HMRC about the requirement to add VAT to MPS products.
Competitors like Brewin Dolphin, Tilney Smith & Williamson and Investec have also removed VAT from their model portfolios, following HMRC’s indication that it is not required.
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In September, Brooks Macdonald announced record revenues of £108.6m for the year to 30 June 2020, along with funds under management of £13.7bn.