- The HM Treasury has released a summary of responses to the previous consultation on the VAT treatment of fund management.
- The government aims to provide clarity and certainty for stakeholders and remove reliance on retained EU law.
- After considering responses, the government has decided to maintain the VAT exemption for fund management services under Items 9 and 10 of Group 5, Schedule 9 of the VAT Act 1994.
- The government will update guidance to reflect this change. Any new fund types will require changes to the VAT Act 1994.
- The Ministerial Statement confirms that businesses cannot rely on the direct effect of EU law after December 31, 2023.
Source KPMG
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