Deduction of VAT on pension fund management costs
HMRC have issued a further brief on the CJEU decision in PPG. The brief confirms that the transitional period for VAT recovery on pension fund costs is to be extended until 31 December 2017.
The brief explains that this is due to the fact that it is taking longer than expected to reconcile the court decision with pension and financial service regulations, accounting rules and emerging case law. This means that taxpayers may continue to use the 70/30 split as outlined in Notice 700/17 Funded Pension Schemes until 31 December 2017.