Emily Clark and Ian Zeider (Travers Smith) analyse the government’s recently published consultation.
The VAT treatment of fund management services is a complex area. There is an exemption for the management of certain types of fund but its exact scope is uncertain. In addition the current rules generate a policy anomaly under which UK fund managers are incentivised by the VAT consequences to use non-UK fund vehicles. With Brexit giving the UK the opportunity to depart from the EU based position many in the asset management sector see reform of the UK VAT rules for fund management services as an opportunity for the country to give itself a competitive edge over rival European fund jurisdictions (in particular Luxembourg).
Hopes were therefore high when in March 2020 the government announced that it would undertake (during 2020) a review of the UK funds...
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Emily Clark and Ian Zeider (Travers Smith) analyse the government’s recently published consultation.
The VAT treatment of fund management services is a complex area. There is an exemption for the management of certain types of fund but its exact scope is uncertain. In addition the current rules generate a policy anomaly under which UK fund managers are incentivised by the VAT consequences to use non-UK fund vehicles. With Brexit giving the UK the opportunity to depart from the EU based position many in the asset management sector see reform of the UK VAT rules for fund management services as an opportunity for the country to give itself a competitive edge over rival European fund jurisdictions (in particular Luxembourg).
Hopes were therefore high when in March 2020 the government announced that it would undertake (during 2020) a review of the UK funds...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
