7IM has become the latest platform to announce the removal of VAT charges from its Managed Portfolio Service (MPS).
The price changes will come into effect as of 1 February 2021 and apply to the model portfolios available to Financial Planners through the 7IM platform as well as third party platforms.
7IM follows a growing number of providers removing VAT from their Managed Portfolio Services, recently including Brooks Macdonald and AJ Bell.
The decision to remove VAT follows industry discussions with HMRC about the requirement to add VAT to MPS products with HMRC indicating it is not required. Other firms which have now removed VAT from MPS investment products include Brewin Dolphin, Tilney Smith & Williamson and Investec.
The changes mean the 7IM Active and Passive model portfolios will have an all-in cost of 0.25% going forward, while the Bespoke model portfolios range between 0.25%-0.30%.
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