TaxCorporate TaxPensions industry campaigns for VAT exemption

Pensions industry campaigns for VAT exemption

Legal challenge for pensions to gain VAT parity with other investment funds is mounted

A legal bid to secure the same VAT treatment for pensions funds as other
investment funds, has been launched by taxpayers, reports the
Financial
Times
.

The decision to take the matter to court follows a similar challenge last
year by investment trusts, which won a European ruling in their favour.

A successful challenge would allow the pension funds sector to receive an
estimated £300m in backdated VAT over the last three years. Pension funds would
also be exempt from paying about £100m a year in VAT in the future.

The case is being brought by Wheels Common Investment Fund, a £8bn
multi-employer scheme covering Ford Motor Company, Jaguar Cars and Land Rover
and the national Association of Pensions Funds.

Initially the case will be presented to the UK VAT & Duties Tribunal but
could be referred to the European Court of Justice.

Related Articles

Watch out when winding up

Corporate Tax Watch out when winding up

1m Emma Rawson, ATT Technical Officer
How might Brexit affect UK tax policy?

Brexit & Economy How might Brexit affect UK tax policy?

1m Santhie Goundar
Corporation tax losses – your newly flexible friends

Corporate Tax Corporation tax losses – your newly flexible friends

3m Emma Rawson, ATT Technical Officer
HMRC large business tax enquiry duration rises to 3 years

Corporate Tax HMRC large business tax enquiry duration rises to 3 years

4m Emma Smith, Managing Editor
SMEs paying higher rate of corporation tax than big businesses

Corporate Tax SMEs paying higher rate of corporation tax than big businesses

4m Alia Shoaib, Reporter
Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

Corporate Tax Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

7m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

7m Emma Rawson, ATT Technical Officer
EU divided over radical tax reforms targeting tech giants

Corporate Tax EU divided over radical tax reforms targeting tech giants

8m Alia Shoaib, Reporter