Tag Archives: VAT

VAT on pension costs – some good news!

It’s a while since we last commented on VAT on pensions but we return with some good news which HMRC have quietly slipped out in updated content to the VAT Manual. Back in 2014, following the PPG case, HMRC proposed withdrawing their practice of allowing employers to recover VAT on charges on administration costs for … Continue Reading

UK pensions VAT – yet another update

Keen readers will recall the long-running saga of the correct treatment of VAT incurred by employers on pension fund costs. Following rulings by the ECJ, HMRC had determined that it needed to change existing UK practice. In particular, this affected defined benefit schemes where HMRC had allowed employers to recover some, but not all, of … Continue Reading

VAT and UK pensions schemes – the saga continues

HMRC has now issued further guidance on the implications of the CJEU rulings in ATP and PPG, two cases that dealt with the VAT treatment of costs incurred by pension funds. Clarification of HMRC’s approach has been eagerly awaited, following consultation with a range of industry bodies. So where do things stand now? Defined contribution … Continue Reading

VAT on UK pension costs – a welcome respite?

Back in February, HMRC issued Brief 06/14 outlining their response to the European Court decision in the PPG case. This promised a change in the long accepted practice of allowing employers to recover a proportion of VAT incurred on the administration of defined benefit pension schemes – the so-called 70/30 rule. HMRC planned to scrap … Continue Reading