Funded Pension Schemes (VAT Notice 700/17)

• HMRC’s VAT Notice 700/17 explains how to claim input tax on funded pension scheme expenditure, providing authoritative guidance for a technically complex area of VAT recovery.
• The notice covers both employers and trustees, clarifying their respective positions on recovering VAT incurred on costs relating to the administration and investment management of funded pension schemes.
• Getting this treatment right matters because pension‑scheme VAT recovery has long been a contentious topic, shaped by case law and evolving HMRC practice. The guidance helps employers and trustees determine what input tax can be reclaimed, how to apportion costs and what documentation is needed to support claims. Businesses and scheme administrators should review the notice to ensure their VAT recovery approach aligns with current HMRC policy, minimising the risk of disallowed claims, assessments or disputes over pension‑related expenditure.

• Gov UK

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