Montgomery Charles secures over £500,000 VAT Refund for TAM Fundforce Clients

By May 10, 2024Client Zone, News

In excellent news for clients holding TAM Fundforce investments, Montgomery Charles has successfully challenged the VAT status of our fees in relation to managed portfolio services.  

The challenge, which represents the culmination of several years of hard work by our financial and technical teams, represents a landmark moment for the financial planning sector, and has resulted in TAM Fundforce investors seeing their ongoing client fees on managed portfolio services reduce by 20%.

For Montgomery Charles clients, the development further reflects the commitment we have to delivering value across all our services, and our mission to keep abreast of all changes in the wider financial landscape that might impact our clients.

How the challenge came about

Legislation within the Financial Services Industry states that all Discretionary Fund Management (DFM) services are subject to VAT at the standard rate.  The exemption from this is where the product or portfolio falls within the category of a “Special Investment Fund” (SIF’s)*.

In 2020, Tatton Asset Management successfully agreed with HMRC that Discretionary Fund Management portfolios were exempt from VAT.  Following this ruling TAM then reviewed their own status and in April 2021, TAM was successful in obtaining confirmation that their fees on managed portfolio services can be classified under the category of a SIF and therefore are also VAT exempt.

Subsequent to this, Montgomery Charles have then been able to challenge HMRC on the VAT status of our own fees as our clients are now classified as investing into exempt managed portfolios with TAM.

After consultation with the industry, HMRC have agreed this position, and our challenge has been successful.

Obtaining this outcome has been technically challenging and a lengthy process and we are delighted that this has resulted in a very positive outcome for our clients.  It remains our mission to provide them with great value advice which, as our motto goes, helps them ‘get more life out of life’.

Find out more about what we do

We put our clients at the heart of everything we do. Our holistic approach to financial planning is geared towards helping our clients ‘get more life out of life’, and our client journey is tailored to give us the fullest picture possible of the financial planning needs of you and your family.

If this sounds like something you’d like to find out more about, our complimentary consultations – an informal, no-strings chat to discuss your personal position and assess how we might add value – is a good place to start.

Book a consultation now >

*(VATA 1994, Sch 9, Group 5, Items 9&10).