The UK government’s response to the consultation on the VAT treatment of fund management services confirms that the VAT exemption for the management services of funds listed under VATA 1994 Sch 9 Group 5 Items 9 and 10 will remain in place.
The consultation confirmed that there is widespread reliance on items 9 and 10, ‘with a strong preference among respondents to continue to rely on a single model based on these items’.
The government has also decided that the definition of ‘management’ established by settled case law provides sufficient legal certainty, and therefore does not intend to codify the definition in legislation but is considering providing greater clarity in guidance.
Nigel Huddleston, Incoming Financial Secretary to the Treasury, has also issued a written statement confirming the government’s intentions.
The UK government’s response to the consultation on the VAT treatment of fund management services confirms that the VAT exemption for the management services of funds listed under VATA 1994 Sch 9 Group 5 Items 9 and 10 will remain in place.
The consultation confirmed that there is widespread reliance on items 9 and 10, ‘with a strong preference among respondents to continue to rely on a single model based on these items’.
The government has also decided that the definition of ‘management’ established by settled case law provides sufficient legal certainty, and therefore does not intend to codify the definition in legislation but is considering providing greater clarity in guidance.
Nigel Huddleston, Incoming Financial Secretary to the Treasury, has also issued a written statement confirming the government’s intentions.
