On October 26, 2015 the UK HM Revenue & Customs published Revenue and Customs Brief 17/15: deduction of VAT on pension fund management costs. The document is a policy paper. This Revenue and Customs Brief follows on 2 Revenue and Customs Briefs that were published on an earlier occasion, namely Revenue and Customs Brief 43/14 and Revenue and Customs Brief 08/15.
The Revenue and Customs Brief states that it is aimed at:
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businesses and other taxable entities that provide pension schemes for their employees
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pension fund management providers
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pension scheme trustees and pension providers
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tax advisers
Revenue and Customs Brief 17/15 sets out HMRC position following the decision of the Court of Justice of the European Union (CJEU) in Fiscale Eenheid PPG Holdings BV (C-26/12). This case concerned an employer’s entitlement to deduct VAT paid on services relating to the administration of defined benefit pension schemes and the management of their assets.
Revenue and Customs Brief 17/15 announces a 12 month extension to the transitional period, which was due to end on December 31, 2015. The Brief also provides an update on HMRC’s position on possible arrangements for employers to achieve VAT deduction for the costs of administering occupational pension schemes and managing their assets going forward.
Revenue and Customs Brief 17/15 discusses a.o. the following subjects
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Background
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Tripartite contracts and Corporation Tax
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Latest position on other options
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Supply of scheme administration services by pension trustees to an employer
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VAT grouping
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Other options
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Transitional period extended until December 31, 2016
Click here to be forwarded to Revenue and Customs Brief 17/15: deduction of VAT on pension fund management costs as available on the website of the HMRC.
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