A former MCCB source has revealed to Mortgage Introducer that, despite an appeal to the Inland Revenue, the MCCB was charged 17.5 per cent tax on its annual fees.
It is understood that the MCCB contested the Inland Revenue decision but the appeal was rejected.
The voluntary regulator’s accountants, KPMG, then informed the MCCB that any further appeal had at best a 40 per cent chance of success.
Tony Jones, managing director of Pink, commented: “The government has done rather well out of a voluntary organisation set-up to protect customers.
“Between the money being given to the FSA and the tax bill, it has got its hands on over a million pounds.”
Matthew Bright, managing director of Optoma, agreed with Jones. He said: “Brokers paid their fees to an organisation which was set-up to protect consumers and then the government decided it would take some of that money. It makes no sense whatsoever.”
