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It
adds that all tax inconsistencies must be removed if
CAR is going to succeed and is urging the FSA to
liaise with Government in order to provide clarity in
this area.
Skandia
says there is currently a danger that consumers could
opt for a payment method that is not suitable for them
simply because it has a more favourable VAT treatment.
Head
of marketing Billy Mackay says: “There is a great
deal of confusion and inconsistency in the way VAT is
currently applied to payments being made for financial
advice. In a period where simplification continues to
be a common theme real benefits can be gained from
simplifying the rules surrounding VAT and adviser
remuneration.
“If
this can be achieved by confirming that any form of
CAR does not attract VAT, CAR can be a success.
Getting it right can only further improve confidence
and trust in the financial services sector.”
Source
: Money Marketing - London,UK, dated 06/02/2008
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