We are referring here to commission which 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 picks funds (known as platforms) via a website which rebates some or all of the investment charges that would normally go to advisers as commission.
HMRC now believe these payments are generally liable to income tax but that is not the case in certain circumstances which 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 have accepted that it is not right to attempt to collect tax prior to 6 April 2013.