HM Revenues and Customs (HMRC) has said it is examining the tax status of platform unit and cash rebates to investors.
A spokesman said the Revenue had been alerted to the issue and wanted to ensure rebates were being taxed correctly.
'The tax status of regular payments by platforms to investors under current legislation has been raised with HMRC and we are considering whether the correct tax treatment is being applied by the platforms and the recipients of such payments,’ he said.
While platform cash rebates are set to be banned from 31 December, platforms will still be able to pass on unit rebates from fund managers to investors. When the cash rebate ban was first announced, platforms warned the move to unit rebates could create a taxable event.
With fund managers creating rebate-free clean share classes under the retail distribution review, many platforms have committed to moving away from rebates for the majority of their business.
Skandia has been the most vocal in its support of a unit rebate model, claiming that it will enable them to secure a better deal for investors.