- HMRC announced a policy change on VAT deductions for pension fund management costs.
- Previously, VAT deductions were split between employers and pension trustees.
- Now, all input VAT on investment costs can be deducted by the employer.
- This change is based on a European Court of Justice decision.
- HMRC’s announcement lacks detailed guidance on the new rules.
- More detailed guidance from HMRC is expected soon.
- Employers managing pension schemes may benefit from increased VAT deductions.
- Those involved in pension fund management should review current VAT treatment and await further guidance.
Source: deeksvat.co.uk
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.
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