Investors face tax on share loyalty bonuses

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Fund investors face paying income tax on "loyalty bonuses" paid by fund supermarkets from 6 April, reports Nick Huber.

HMRC has ruled that the payments are "annual payments" and should therefore be taxed as income, starting in the new tax year.

Hargreaves Lansdown, the largest payer of loyalty bonuses on funds in the UK, called it...

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About Nick Huber

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I’m a specialist business journalist and have a particular interest in tax and technology. 


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07th Apr 2013 14:27

Has HMRC forgotten SP 5/95?

Is this the same 'annual payment' discussion that was had when SP 5/95 tried to say that commissions and cashbacks on own purchases were Case VI income?  SP 5/95 had to be withdrawn and replaced by SP 4/97 because it was recognised that a discount or rebate of commission on a personal purchase could not be taxable income.  What has changed?

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08th Apr 2013 23:07

The difference is that this is part of the return on an investment.

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