James Hay has stated that it will be charging VAT on some of its Sipp fees after an apparent change in HM Revenue & Customs' (HMRC's) stance.
The SIPP provider cited a change in HMRC’s interpretation of VAT rules for insured Sipps. This means it will be charging VAT on commercial property, specialist investment and income drawdown charges. Not a dramatic change, and it brings it into line with SSAS companies, who anyway charge VAT on rent, typically of industrial estate units rented by the sponsor firm.
VAT exemption for IFAs hasn't gone away, and the current free use of the argument that IFAs are "broking" - bringing together two parties looks thin to me and to most VAT advisers, especially since so many are moving closer to being fund managers than ever before.