Following the decision of the CJEU in PPG Holdings BV (C-26/12), HMRC has confirmed that it now accepts that services received by a pension fund, which go further than the management of investments, can be general costs. Therefore, provided that the supplies are received by the employer, the VAT incurred on those supplies can be deductible by the employer (Revenue & Customs Brief 06/14).
Businesses that provide pension schemes for their employees and receive supplies of services which go beyond the mere management of investments, can therefore claim a refund of any input VAT which has not previously been claimed.
Following the decision of the CJEU in PPG Holdings BV (C-26/12), HMRC has confirmed that it now accepts that services received by a pension fund, which go further than the management of investments, can be general costs. Therefore, provided that the supplies are received by the employer, the VAT incurred on those supplies can be deductible by the employer (Revenue & Customs Brief 06/14).
Businesses that provide pension schemes for their employees and receive supplies of services which go beyond the mere management of investments, can therefore claim a refund of any input VAT which has not previously been claimed.
