VAT recovery and pension schemes: where are we now?
HMRC’s policy on reclaiming VAT on investment management and other costs remains under review in the light of two recent decisions from the Court of Justice of the European Union (CJEU). The first of these cases, PPG Holdings, relates to defined-benefit (DB) schemes. Although the ruling itself appeared helpful for employers, HMRC’s current interpretation of it is restrictive and could effectively increase overall pension scheme costs for sponsors of DB schemes. The second case, ATP PensionService, relates to the administration of defined-contribution (DC) schemes. HMRC has yet to respond formally to this case.
Updated guidance on VAT treatment in the light of both judgments is now expected in autumn 2014. Current arrangements where the pension scheme is invoiced for services under HMRC’s previous practice, as expressed in VAT Notice 700/17 (the 70:30 split arrangements), can continue until the new guidance is issued. A further transitional period is likely to be allowed from that point.
This briefing summarises the current position, including areas of uncertainty, and highlights points for schemes and sponsors to consider in advance of new guidance being published…
Click on the link below to read the rest of the Allen & Overy briefing.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from The Lawyer
Analysis from The Lawyer
Which firms are cutting it in this era of slimline rosters, and who are the GC new brooms making clean sweeps? The Lawyer can reveal all
At the time of its launch Accutrainee was described as a revolutionary change to the training model. Has it proved to be so? Not really.