Hedge fund VAT proposals to be reconsidered
Customs & Excise is believed to be reconsidering proposals that would prevent hedge fund managers from reclaiming VAT on certain items, following protest from the industry.
The original proposals calls for managers to be prevented from reclaiming VAT on such things as rent and Reuters’ screens, something they are currently able to do.
But complaints from the industry and fears that the £50bn market based in London could be forced to relocate has led Customs to resume discussions with the industry to ‘listen to its concerns’ the FT reported.
No decision has yet been taken, but an announcement will be made shortly, Customs said.