UK investment manager Brooks Macdonald will stop applying VAT on the group’s managed portfolio service (MPS), effective from 1 January 2021.
This will apply to Brooks Macdonald’s custody MPS and those held on third-party platforms (platform MPS).
The firm said the change means that Brooks Macdonald can now offer its IFA partners and their clients “high-quality investment management services at an even more competitive price regardless of the platform”.
A spokesperson added: “Following guidance from HM Revenue & Customs (HMRC), we are delighted to be able to remove VAT from our MPS and are working with our platform partners to remove it at the earliest opportunity.”
The move comes months after Brooks Macdonald announced a strategic partnership with SS&C Technologies, a global provider of software and technology services to the financial services industry.
At the time, the firm said the collaboration will “provide a market-leading digital experience for Brooks Macdonald’s intermediaries and clients”.
