Brooks Macdonald has stopped applying VAT on the group’s managed portfolio service (MPS) from 1 January 2021.

This cut will apply to Brooks Macdonald’s custody MPS and those held of third party platforms.

The move follows several rivals who have also removed VAT from their MPS propositions.

The decision to remove VAT follows industry discussions with HMRC about the requirement to add VAT to MPS products with HMRC indicating it is not required. Several firms have now removed VAT from MPS investment products including Brewin Dolphin, Tilney Smith & Williamson and Investec.

A spokesperson for Brooks Macdonald said: “Following guidance from HRMC, we are delighted to be able to remove VAT from our MPS and are working with our platform partners to remove it at the earliest opportunity.”

In September, Brooks Macdonald announced record revenues of £108.6m for the year to 30 June 2020, along with funds under management of £13.7bn.