VAT on pension costs – HMRC confirms it’s “as you were” and reverts to allowing 70/30 split for DB schemes’ expenses
Of interest to DB schemes is HMRC’s change of heart and allowing a reprieve for the “70/30 split” relating to VAT charged on investment management and administration services to funded pension schemes.
In past updates, we have reported on HMRC’s proposed changes in approach to treatment of VAT on employer’s DB scheme costs, following various judgments in European tax cases. It is over three years since HMRC first announced the proposed cessation of the 70/30 split concession, and the deadline for the end of the transitional period for its complete withdrawal has been extended several times. Click here for more.
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