Investment firm and platform provider Parmenion has joined the growing list of investment managers who have removed VAT from their Managed Portfolio Services (MPS).

The Bristol-based firm says that from today it will no longer charge VAT on its model portfolio services (MPS), following guidance from HMRC.

FE Investments recently removed VAT from its MPS, joining a list of firms including Charles Stanley, 7IM, Brooks Macdonald and AJ Bell which have done the same.

Parmenion says adviser firms using its MPS will see fee reductions reflected in all documents and on the platform. 

Parmenion commissioned a technical review of its VAT position in Autumn 2020, following a series of announcements from peer businesses that they had received similar guidance from HMRC. Following the review Parmenion sought HMRC guidance at the end of 2020.

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."