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Deduction of VAT on pension fund management costs.
HMRC have issued Revenue and Customs Brief (RCB) 17/2015 updating their position on the deduction of VAT on pension fund management costs.
The brief announces a 12-month extension to the transitional period during which taxpayers may continue to use the VAT treatment outlined in Notice 700/17: funded pension schemes which was due to end on 31 December 2015.
It also updates HMRC’s position on how employers can obtain a VAT deduction for the costs of administering occupational pension schemes and managing their assets.
HMRC’s position on tripartite agreements has not changed but they acknowledge concerns about the implications such arrangements may have for employers’ corporation tax deductions.
The publication follows RCB 8/2015 and RCB 43/2014 which set out the department’s view after the Court of Justice of the EU’s decision in Fiscale Eenheid PPG Holdings BV cs te Hoogezand (C-26/12) .
The...
