A senior partner practice at St James’s Place (SJP) is under HM Revenue & Customs (HMRC) scrutiny for advocating a controversial private school fees tax strategy. The strategy, promoted by SJP-associated firm Apollo Private Wealth, involves the use of absolute or bare trusts to minimise tax liabilities. However, experts have raised concerns regarding its compliance with tax laws. Here’s a closer look at the strategy, expert opinions, and responses from SJP and HMRC.
The strategy proposes diverting income into a trust to leverage a child’s tax allowances for covering private school fees. Concerns raised by tax experts include potential income tax liability, misleading claims in the strategy’s benefits, and incomplete utilisation of tax benefits. SJP has emphasised that they do not endorse tax avoidance schemes and are actively investigating the matter. In contrast, HMRC has cautioned against such schemes, urging individuals to comply with tax regulations.
The controversy highlights the intricacies of tax planning and the importance of adhering to legal requirements. As the investigation unfolds and HMRC remains vigilant, it is essential for taxpayers to seek expert advice and ensure their financial strategies comply with the law.

Original Article Source: https://citywire.com/new-model-adviser/news/sjp-firm-s-school-fees-tax-strategy-falls-foul-of-hmrc-experts/a2425398

Have You Lost Money After Receiving Advice From St. James’s Place?

If any of the following points apply to you, it is very likely that you have grounds for a claim:

• • Millions of pounds in financial adviser fees are being deducted from UK investors’ ISAs, pensions and investments every year – these fees could be refunded to you.
  • In most cases the adviser is simply not able to provide the full extent of the services that they promised. This means clients are paying substantial fees for absolutely nothing. Their commission-based advisers may not have given you the best advice.
  • Due to regulatory changes in 2012 nearly all investments and pensions have built in adviser charges. These are deducted every month / year to pay for an agreed level of ongoing service.
  • Each time the adviser fails to meet these service levels they are breaching the terms of their contractual arrangements and you could be due compensation.
  • Pensions: You were advised to switch your pension, Consolidate your pensions; Consolidation is rarely good advice but earns commission which is deducted from your pension, You were advised to stop one policy and start another, Their advice caused an unexpected tax bill.