HARGREAVES TO CHALLENGE HMRC OVER 'DISCOUNT TAX'

摘要

FTSE 100 company Hargreaves Lansdown is preparing a legal challenge against HMRC's decision to impose an income tax on 'loyalty bonuses', which are cash-back rebates on the fund management fees paid by its customers. The tax came into force in April 2013 after HMRC ruled that the rebates were 'annual payments' and should therefore be taxed as income. This means that basic rate tax of 20% should be deducted from the bonuses at source and higher-rate taxpayers will need to declare and pay additional amounts on annual self-assessment forms.