Responding to the Treasury consultation on the VAT treatment of fund management services, the CIOT in principle welcomes the codification of policy ‘accurately and effectively, without unintended consequences, where such reform increases clarity and certainty for taxpayers and their advisers’. The underlying reason for consultation was the proposal to put existing practice onto a legislative footing, rather than changing the current VAT liability of fund management services, the aim being to clarify whether a financial product meets the definition of special investment fund (SIF) and whether the management services are therefore exempt from VAT.
Source: taxjournal.com
