Neutral Prospects for Securing VAT Exemption?

Jamie Randell and Nick Skerrett consider the implications for the investment management sector of JP Morgan Fleming Claverhouse Investment Trust plc and The Association of Investment Trust Companies

Practitioners in the investment management sector have had to deal with considerable uncertainty over the last couple of years following the judgment in Abbey National plc Case C-169/04. JP Morgan Fleming Claverhouse Investment Trust plc and The Association of Investment Trust Companies Case C-363/05 (hereafter Claverhouse) has been expected to cause a significant shift in VAT liabilities for funds and their managers. The recent Opinion of Advocate-General (A-G) Kokott in Claverhouse was heralded by some commentators as a resounding victory in winning VAT exemption for the management of investment trust companies (ITCs). While the Opinion does open...