Are you due some VAT back on your businesses pension scheme costs?
In the past HMRC have always taken the view that investment management services provided in respect of assets in a pension scheme were liable to 20% VAT. However following the recent outcome of tax cases heard in the European Court, their policy relating to some of the services provided was found to be incorrect.
If a pension scheme qualifies as a special investment fund (SIF) then the element of fees paid relating only to the management of these investments should be VAT exempt. A SIF is a fund that has more than one member and more than one investment, and where members share the risk of these investments. There is the possibility of going back 5 years to reclaim the VAT on the element of these costs.
If you think you may be affected by the above then you should contact your pension scheme to see if a VAT refund is due for you.