Extension of VAT exemption for management of investment funds
Extension of VAT exemption for management of investment funds
Tue 31 Mar 2020
SI 2020/209 extends the existing UK Value Added Tax (VAT) exemption for the management of investment funds to the management of pension funds that satisfy certain conditions and removes the current restriction on the type of assets that a close-ended collective investment undertaking can invest in for its management to qualify for exemption. The instrument has effect from 1 April 2020.
This implements the CJEU decision in ATP Pension Service (Case C-464/12) so that businesses in the UK no longer need to rely on the direct effect of EU law. It also widens the range of investments that can be held in such funds following the CJEU decision in Fiscale Eenheid X (Case C-595/13), no longer limiting the range of investments to securities.
For further advice, please get in touch with a member of the Mazars indirect tax team.
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