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Here you can access summary of the key current tax developments in Ireland, the UK and internationally as reported by Chartered Accountants Ireland

The report of key tax developments are displayed per year, per month, by Ireland, the UK or International and by report title

VAT – treatment of pension fund management services update

HMRC has published a brief covering a change in policy concerning the VAT treatment of pension fund management services provided by regulated insurance companies. The changes had originally been scheduled to take effect from 1 January 2018 but this has now been postponed until 1 April 2019.

According to the brief, the VAT treatment of pension fund management services provided by regulated insurance companies will no longer be treated as exempt but will become liable to VAT at the standard rate.

Following the Court of Justice of the European Union judgement in Card Protection Plan, UK law was amended from 1 January 2005 to remove any link between an insurer’s regulatory status and the entitlement to VAT exemption on its supplies.

HMRC’s view is that the judgment means that the EU insurance exemption applies only to the underwriting of risk and doesn’t apply to other supplies made by insurers.