PIMA Receives Further Clarification from HMRC on Claims for Split Caps Shares
The PEP & ISA Manager’s Association continues an active dialogue with Her Majesty’s Revenue and Customs (HMRC) to clarify the treatment of funds invested in failed split capital investment trusts.
Recently the HMRC made PIMA aware of how investors should proceed to claim compensation in cases where the shares have been de-listed (and thus cannot technically be removed from the ISA/PEP managers’ nominee) but are yet to be introduced on the HMRC negligible value list. HMRC have confirmed that resulting recompense may be kept within the PEP/ISA, but investors must make the claim directly to Funds Distribution Limited (the administrator of the compensation fund). The Manager cannot do so on behalf of the fund holder.
When the payment is made and the investor wishes to replenish their PEP/ISA holdings, both the funds and a copy of the letter from FDL should be given to the manager. This will ensure that those funds are not counted as a separate subscription toward the overall limits.
PIMA has been a leading advocate of a transparent process for compensation and the ability to easily reinvest in PEPs and ISAs. This comes as part of an ongoing effort to serve PIMA members and holders of tax incentivised savings products.
PIMA Director-General Tony Vine-Lott said:[i] ‘We very much appreciate the ongoing willingness of the HMRC to provide clarification for our members and the millions of holders of PEP and ISAs across this country. This clarification and the ability to reinvest the funds signals importance of retaining saving in these tax free vehicles and will do a great deal to assuage investors who lost out in the wake of the collapse of these funds.’[/i]
For comment on this clarification, please contact:
Tony Vine-Lott – Director-General, PIMA
01372 374728
07790 006108
Iain Anderson / Jacob Coy – Cicero Consulting
020 7665 9530
079 0636 1970