Investment advice exempt from VAT — except for defined-benefit pension funds
In the case of Wheels Common Investment Fund Trustees Ltd and others v HMRC (Wheels), the Court of Justice of the European Union (CJEU) has held that management services provided to a fund in which the assets of defined-benefit pension schemes are pooled for investment purposes are not exempt from VAT, as such a fund does not constitute a ‘special investment fund’ for the purpose of the VAT exemption.
Wheels are the trustee of a fund in which the assets of defined benefit pension schemes set up by Ford Motor Company (Ford) are pooled for investment purposes in order to meet Ford’s obligations under national legislation and collective agreements (the Fund). Capital International Limited (CIL) provided management services to the Fund and initially charged and accounted for VAT on its services.
Following the decision in Claverhouse, CIL sought to reclaim the VAT accounted for in respect of the management services provided to the Fund on the grounds that the services supplied were exempt under Article 135(1)(g) of the Principal VAT Directive (Article 135(1)(g)). HMRC refused the claim and Wheels appealed to the First-tier Tribunal…
If you are registered and logged in to the site, click on the link below to read the rest of the Nabarro briefing. If not, please register or sign in with your details below.
News from Nabarro
Briefings from Nabarro
Nominet, the UK’s registry operator, has announced that, from summer 2014, shorter .uk domain names will be made available for registration.
The Safe Harbor scheme is of key importance to transatlantic trade.
Analysis from The Lawyer
Real estate continues to be the key money spinner for Nabarro, which has always been known for its work in the UK property market, (although) last year results were up across the firm. Google’s ...
A few UK200 firms – such as DWF – have managed to grow in the downturn. A few, such as Berwin Leighton Paisner, have come back stronger than ever after a wobble. Nabarro fits into neither category.