.png)
.png)
Management costs relating to non-special investment funds no longer VAT-exempt.
HMRC’s policy of allowing all pension fund management services provided by regulated insurance companies to be exempt from VAT is to be discontinued from 1 January 2018.
The UK has allowed all such pension fund management services to be exempt despite the finding of the Court of Justice of the EU in Card Protection Plan that the insurance exemption applies to the underwriting of risk only.
The EU has reviewed this treatment regularly, reflecting the uncertainty on the treatment of pension fund management services. However, it is now clear that there will be no further review of the EU rules in this area before the UK exits the EU. In light of this, the Revenue has updated its policy to reflect the settled case law.
HMRC believes most funds will not be affected because insurers are mostly managing DC schemes which will remain exempt.
Details are in Revenue and Customs Brief 3/2017.
