Parmenion has become the latest platform to scrap VAT charges on its model portfolio services (MPS).
The firm, which was sold to private equity house Preservation Capital Partners last month, said adviser firms using Parmenion’s MPS will see fee reductions reflected in all documents on the platform.
Laura Barnes, head of intermediary distribution at Parmenion, said: “We welcome HMRC’s guidance and we’re delighted to be able to remove the VAT charge on our model portfolio service.
"This brings us back in line with some of our competitors and levels the MPS playing field on simplicity of charges.”
The firm commissioned a review of its VAT position in autumn last year after a slew of platforms confirmed they were scrapping the tax.
Other discretionary fund managers (DFM) who removed the tax from their MPS include HSBC, Sanlam, Quilter and Investec.
The decisions were prompted by an HMRC ruling that Tatton’s MPS vehicle was exempt from the tax, and the asset manager was refunded £1.7m.
FTAdviser understands that most DFMs have sought individual rulings from HMRC on whether VAT is payable on their MPS, and the taxman has told firms to ‘self assess’ the situation.