The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
This guidance note provides an overview of the VAT treatment of investment fund management services.
The management of special investment funds is exempt from VAT. The UK regards the following as special investment funds:
authorised unit trust schemes (AUTS) as defined in Financial Services and Markets Act 2000, s 237(3)
authorised open ended investment companies (OEIC) as defined in Financial Services and Markets Act 2000, s 237(3)
authorised contractual schemes as defined in Financial Services and Markets Act 2000, s 237(3)
a Gibraltar collective investment scheme that is not an umbrella scheme, or a sub-fund of any other Gibraltar collective investment scheme (defined in FSMA 2000, s 264)
an individually recognised overseas scheme that is not an umbrella scheme, or a sub-fund of any other individually recognised overseas scheme (defined in FSMA 2000, s 272)
a recognised collective investment scheme constituted in an EEA state that is not an umbrella scheme, or a sub-fund of any other recognised collective investment scheme constituted in another EEA state (see FSMA 2000, s 264)
(with effect from 1 April 2020) a ‘qualifying pension fund’ (broadly, a pension fund established in the UK or an EU member state, where the contributions to the fund are (a) spread over a range of investments, and (b) made solely by beneficiaries of the fund who bear the investment risk (ie a defined contribution scheme)
a closed-ended collective investment undertaking
2006/112/EC, Article 135 (1)(g); VATA 1994, Sch 9, Part II, Group 5, Items 9–10, note 6; SI 2020/209; VATFIN5000; VAT Notice 701/49: finance; De Voil Indirect Tax Service V4.136, V4.136A–V4.136J; VATFIN5100
The above provisions do not cover a collective investment scheme, or sub-fund, that is not for the time being marketed in the UK if it has never been marketed in the UK or less than 5% of its shares or units are held by, or on behalf of, investors
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
Once a self assessment tax return has been filed, both HMRC and the taxpayer (or the agent) has the right to make changes to the return. There are different time limits depending on whether it is a correction by HMRC or an amendment made by the taxpayer.CorrectionHMRC has the right to amend the tax
IntroductionA dividend is a distribution of profit by a company to its shareholders.A dividend is not only a payment in cash. It can be the issue of new shares in exchange for forfeiting the right to a cash payment (a stock dividend). For more detail, see the Cash dividends and Non-cash dividends
Class 2 and Class 4 NIC are payable by self-employed earners and partners in a partnership. This guidance note considers Class 2 contributions. For Class 4 contributions, see the Class 4 national insurance contributions guidance note.Class 2 NIC arise where a self-employed individual has income
Class 1 and Class 1AClass 1 and Class 1A are the categories of NIC that can be charged on expenses reimbursed and benefits provided to employees. These classes are mutually exclusive. A benefit cannot be subject to both Class 1 and Class 1A NIC. Three requirements must be met before Class 1A NIC is