RCB/35/08 VAT exemption for fund management services
Revenue & Customs Brief, Issue 35. 24 July 2008
At Budget 2008, it was announced that the VAT exemption for fund management services would be amended with effect from 1 October 2008. The amending legislation, explanatory memorandum, and draft guidance have now been published on our website. This Revenue & Customs Brief provides some detail about the amendment and information for businesses wishing to submit claims for overpaid VAT in the light of these changes.
Background
EU VAT law exempts “the management of special investment funds as defined by Member States”. The UK interpretation of this was challenged and, following the ECJ judgment in JP Morgain Fleming Claverhouse Investment Trust plc, we accepted that closed-ended investment undertakings, such as investment companies (ITCs), should be defined for the purposes of