RCB/44/14 VAT treatment of pension fund management services
Revenue & Customs Brief, Issue 44 25 November 2014
Purpose of this brief
This brief sets out the position of HM Revenue and Customs (HMRC) following the decision of the Court of Justice of the European Union (CJEU) in a Danish case concerning VAT and pension fund management services, ATP Pension Services (C-464/12) (ATP). The CJEU found that a pension fund which pooled investments from a number of defined contribution occupational pension schemes qualified as a Special Investment Fund (SIF) for the purposes of the VAT exemption for fund management services.
A separate Revenue and Customs brief has been issued that sets out HMRC's position on the right to deduct VAT charged on services supplied in connection with pension schemes following the CJEU's decision in PPG Holdings BV (C-26/12 (PPG).
This Revenue and Customs brief is primarily aimed at—
— businesses and other organisations that provide pension schemes for their employees
— pension fund managers and administrators
— insurers and other pension providers
— pension scheme trustees
— tax advisers
ATP provided administration services in connection with a pension fund which pooled investments from a number of defined contribution occupational pension schemes. These services consisted of a number of functions aimed primarily at the operation and administration of accounts within the pension fund, including the handling of payments from employers and crediting pension contributions to an individual pension customer's account.
The Danish referring court asked the CJEU whether the fund administration services supplied by ATP could