- HMRC announced a change in policy on VAT deduction for pension fund management.
- Employers can now deduct all VAT incurred on administration and asset management of defined benefit pension funds.
- The dual use apportionment of investment costs by employers and trustees is eliminated.
- This change may increase VAT recoverability on investment and administration costs.
- VAT accounting processes will be simplified.
- The new policy is effective from 18 June 2025.
Source: taxscape.deloitte.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
Latest Posts in "United Kingdom"
- Understanding VAT Obligations and Reliefs for Charities in the UK
- Guide to Claiming VAT and Import Duty Repayments: Eligibility, Process, and Requirements
- AI in Tax: Balancing Innovation and Risks in a Rapidly Evolving Landscape
- Deos Group.co.uk Ltd Wins Appeal Against HMRC on VAT Input Tax Disallowance and Penalty
- Colchester Institute Corporation v HMRC: VAT on Government Grants for Free Education Services
