David Anderson and Matthew Rees consider the Advocate General’s opinion in PPG Holdings, the latest case to consider whether defined benefit pension schemes are ‘special investment funds’ for VAT purposes.
Currently there are a number of cases being litigated in the European and domestic courts addressing the taxable nature of supplies of pension fund management services. In the UK alone it is estimated that claims to the value of £2bn are being pursued.
On 7 March 2013 the CJEU released its decision in Wheels Common Investment Fund Trustees Ltd and Others v HMRC (C-424/11)finding that defined benefit pension schemes were not ‘special investment funds’ and thus that their management was not VAT exempt. This conclusion was made for three main reasons namely: their assets were pooled; no risk arising from management was taken by the members; and the employer made contributions to comply with...
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David Anderson and Matthew Rees consider the Advocate General’s opinion in PPG Holdings, the latest case to consider whether defined benefit pension schemes are ‘special investment funds’ for VAT purposes.
Currently there are a number of cases being litigated in the European and domestic courts addressing the taxable nature of supplies of pension fund management services. In the UK alone it is estimated that claims to the value of £2bn are being pursued.
On 7 March 2013 the CJEU released its decision in Wheels Common Investment Fund Trustees Ltd and Others v HMRC (C-424/11)finding that defined benefit pension schemes were not ‘special investment funds’ and thus that their management was not VAT exempt. This conclusion was made for three main reasons namely: their assets were pooled; no risk arising from management was taken by the members; and the employer made contributions to comply with...
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:
