The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marked the end of the Brexit transition / implementation period entered into following the UK’s withdrawal from the EU. At this point in time, key transitional arrangements came to an end and significant changes began to take effect across the UK’s VAT and customs regime. This document contains guidance on subjects potentially impacted by these changes. Before continuing your research, see the Brexit — overview guidance note.
This guidance note provides an overview of the VAT treatment of funded pension schemes.
A funded pension scheme is established either as a personal or company scheme to provide retirement pensions. The company and / or the employee pay contributions to be invested in the fund during the employee’s working life. The fund is held with separate trustees who can be individuals or corporate bodies and the pension scheme is normally separate from the employer’s business.
A defined contribution scheme is one in which contributions (by the employer and employee) are invested in a fund which is used to buy the employee a pension on retirement. Thus the level of the pension is dependent on the success or otherwise of the underlying investments. The employee, therefore, bears at least part of the risk of the investment.
A defined benefit pension scheme is, by contrast, one within which the pension payable to a retired employee is normally linked to the employee’s final salary (a final salary scheme). Although the employee will normally contribute to the cost of the scheme during his period of employment, the pension received on retirement does not relate directly to the contributions which the employee has made. The employee therefore does not normally bear any of the risk of the investment of the pension fund.
In ATP Pension Services A/S v Skatteministeriet, ECJ Case C-464/12, the CJEU held that a
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Generally speaking, inheritance tax (IHT) is charged only on transfers of value by individuals and trusts. However, to prevent avoidance of the tax, the charge is extended to participators in close companies where:•a close company makes a transfer of value, or•the share capital or loan capital of a
Class 2 and Class 4 national insurance contributions (NIC) are paid by self-employed individuals and partners in a partnership on their profits arising within the UK. This guidance note considers Class 4 contributions. For Class 2 contributions, see the Class 2 national insurance contributions
Duty to prepare trust accountsUnder the laws of England and Wales, trustees have a duty to account to the beneficiaries for their financial administration of the trust fund. This duty is established by a substantial body of case law. In the case of Armitage v Nurse, Millett LJ stated:“Every
IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marked the end of the Brexit transition / implementation period entered into following the UK’s withdrawal from the EU. At this point in time, key transitional arrangements came to an end and significant changes began to take effect across the UK’s
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