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Jupp: BDMs should not be offering ‘backdoor’ tax advice

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  • 13/09/2018
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Buy-to-let lenders have been warned that they could get into hot water by their business development managers (BDMs) offering tax advice.

 

Brightstar chief executive officer Rob Jupp noted that he had concerns about lenders offering tax advice to landlords “via the backdoor”.

Jupp made the comments at the Financial Services Expo as part of a panel discussing the importance of brokers not giving tax advice to their landlord clients.

Vida Homeloans director of sales – mortgages Louisa Sedgwick warned the situation could become a mis-selling scandal if not handled correctly and recommended brokers get their clients to sign a document confirming they had not given tax advice.

“If you don’t already have something in place, get yourself a document for clients to sign to say that you have not given them tax advice,” she said.

“Because this is the next endowment mis-selling scandal in the next few years.

“So if you haven’t already got something to document that they have gone for tax advice somewhere else I suggest that you do.”

Jupp said: “The important thing is that brokers spend the appropriate time making sure that they never cut corners on buy-to-let transactions.

“And that appropriate documentation is in place from specialist tax advisers to accept responsibility for the advice they give.”

He added: “I would also add that includes lenders not giving tax advice via the backdoor by their BDMs.”

 

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