VAT on MPS Advice

There's been many discussions over the years whether advisers should be charging their client VAT for advice where the recommendation is to use a DFM's MPS (not on platform).

With DFMs removing their own VAT for their MPS lately, do you think advisers could do the same?


  • Bit of a grey area indeed. There is a reasonable argument that if the MPS is an exempt service (albeit some of the DFM providers I understand have self-certified as exempt), then the advice could also be deemed to be exempt.

    There is a review of VAT treatment of financial services and before doing anything it might be worth waiting for the outcome of this?

  • If it is off-platform, I think it will be outside of the recent challenges and wouldn't be within the intermediated services exemption. But it's definitely a grey, and evolving area.

    Benjamin Fabi 
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