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Period extended for VAT claims on administrative costs.
The transitional period for VAT claims on pension fund administration and management costs has been extended until December 2017. As a result taxpayers may continue to use the treatment outlined in Notice 700/17: Funded pension schemes.
It follows the decision of the Court of Justice of the European Union (CJEU) in Fiscale Eenheid PPG Holdings BV cs te Hoogezand (C-26/12) (PPG). The court confirmed that an employer was entitled to deduct VAT paid on services relating to the administration of defined benefit pension schemes and the management of their assets.
HMRC’s plans to publish possible options for recovery has been put on hold as the department considers the implications of the case.
It said: ‘It is taking longer than expected to reconcile the court decision with pension and financial service regulations accounting rules and emerging case law.’
For details see Revenue and Customs Brief 14/2016.
Ian Bell RSM head of...
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