HMRC reverse saves admin chaos
New rules obliging funds to make payments to certain individuals without charging tax are postponed by HMRC
HM Revenue & Customs has relented
to intense lobbying from the fund management industry to postpone new rules
obliging funds to make payments to certain individuals without charging tax.
The new rules required funds to make gross payments of interest distributions
to non-taxpaying UK investors. Previously, these investors received net
distributions and then had to reclaim the tax.
The move was welcomed by fund managers, but the deadline of April 2007 caused
concern. The industry said the administrative infrastructure needed was
inadequate, as there were no official forms for individuals to fill in and fund
managers had no guidance on how to collect information froml investors.
‘There have been concerns among our members as to the lead time given to
implement these systems changes within management firms and distributors. We
therefore welcome this deferment,’ said Julie Patterson, from the Investment