We are referring here to commission that may be passed on to investors in Collective Investment Schemes and other associated investment products including life insurance policies. This normally happens where an investor chooses funds (known as platforms) via a website that rebates some or all of the investment charges that would normally go to advisers as commission.
HMRC now believes these payments are generally liable to income tax, but this is not the case in certain circumstances that mainly involve ISAs or self-invested personal pension plans (SIPPs). There is also a requirement of the payer to deduct tax at the basic rate.
If you do receive a payment in this way, remember to consider whether or not it should be declared on your future tax returns. HMRC has accepted that it is not right to attempt to collect tax before 6 April 2013.