.png)
.png)
Revenue and Customs Brief 43 (2014) sets out HMRC’s response to the decision in Fiscale Eenheid PPG Holdings BV cs te Hoogezand (C-26/12).
The case concerned an employer’s entitlement to deduct VAT paid on services relating to the administration of defined benefit pension schemes and the management of their assets.
Revenue and Customs Brief 43 (2014) sets out HMRC’s response to the decision in Fiscale Eenheid PPG Holdings BV cs te Hoogezand (C-26/12).
The case concerned an employer’s entitlement to deduct VAT paid on services relating to the administration of defined benefit pension schemes and the management of their assets.
The Revenue now agrees that employers may be able to claim input tax in relation to pension schemes where they could not do so before – as long as there is evidence the services are:
- provided to the employer;
- the employer is a party to the contract for those services; and
- the employer has paid for them.
The taxman accepts there are no grounds to differentiate between administration of a pension scheme and the management of its assets, meaning there is no longer need for administrative simplification to deal with supplies involving both elements. In each case, the employer will be able to deduct input tax if it receives the supply of services.
