The National Association of Pension Funds (NAPF) and Wheels Common Investment Fund (WCIF) have lost their bid to recoup £2bn in backdated VAT on investment management services for defined benefit pension schemes.
The two organisations brought a test case against HM Revenue & Customs (HMRC) to the European Court of Justice (ECJ) in regards to WCIF's Ford pension schemes, claiming that pension funds should be granted the same VAT exemption as special investment funds are with regards to management services. The action was brought in 2008 following a European ruling on J.P. Morgan Fleming Claverhouse Investment Trust that stated investment trusts were special investment funds. DB schemes pay about £100m annually in VAT on investment services. Had the case been successful, funds could have receive...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
