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.