Brooks Macdonald, the investment manager with £13.7bn in funds under management, has announced today that it will stop applying VAT on the group's Managed Portfolio Service (MPS), effective from 1 January 2021.
The change will apply to Brooks Macdonald's custody MPS and those held on third party platforms (platform MPS).
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.
Following guidance from HRMC, 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."
A spokesperson said: "Following guidance from HRMC, 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."
In September, Brooks Macdonald announced record revenues of £108.6 million for the year to 30 June 2020, along with funds under management of £13.7bn.
In October, Brooks Macdonald announced a strategic partnership with SS&C Technologies, a global provider of software and technology services to the financial services industry.
This partnership is the next step in delivering Brooks Macdonald's vision as the leading investment manager for intermediaries, providing best-in-class adviser experience and client service through technology and innovation. The collaboration will provide a market-leading digital experience for Brooks Macdonald's intermediaries and clients.