TaxCorporate TaxPension funds body urges VAT challenge

Pension funds body urges VAT challenge

National Association of Pensions Funds seeks support for a legal bid to make HMRC respond to an EU VAT ruling

The National Association of Pension Funds (NAPF) has urged its members to put
pressure on the taxman in a bid to force a VAT overhaul.

After a key ruling was handed down by the European Court of Justice affording
investment managers VAT relief on pension scheme services, the NAPF is pushing
for pension funds to jointly finance a legal challenge so that the same benefits
apply in the other direction.

NAPF chief executive Joanne Segars, said: ‘After the clarification from the
ECJ, there is a strong case that pension funds should not have to pay VAT on
investment management services. Instead, they would be able to use these savings
to benefit their members.’

The NAPF’s move has been made in response to the ECJ’s judgment on the
JPMorgan
Claverhouse
case, which found that VAT exemption should extend to investment
management services provided to occupational pension schemes.

The NAPF added: ‘Litigation is never without risk and it would be expensive
for any one pension fund to finance a legal challenge on its own. But if a
number of funds agree to share the costs, they could get their money back
several times over. Ultimately, it is for pension funds to decide whether they
want to challenge HMRC. If we get enough interest from our members, we will
co-ordinate a case.’

Further reading:

Investors lay
down law on liability caps

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