HM Revenue & Customs (HMRC) is to publish further guidance on whether discretionary fund managers should be eligible for VAT payments.
In May, the European Courts of Justice ruled DFMs should be eligible for VAT, in a case involving Deutsche Bank.
HMRC met with DFMs in September to discuss the case, which prompted "a very helpful and lively discussion".
DFMs have until 31 October to submit responses, before the revenue publishes a brief on the subject.
"In implementing the judgment, HMRC is looking to achieve an outcome that applies the principles outlined by the ECJ in its judgment and achieves a clearly defined borderline between taxable and exempt supplies that can be applied consistently across all providers of portfolio management services," a spokesperson said.
"Any changes in VAT treatment will apply to portfolio management services only and will not be retrospective but take effect from a future date to be agreed following further consultation with industry representatives."
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