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Defined Contribution Pension Schemes - VAT update

14th March 2014

VAT - further pension changes

The CJEU (ECJ as was) has held that the management of a defined contribution pension scheme (money purchase) should be exempt from VAT. This is in contrast to a decision last year when it held that charges for managing a defined benefit pension scheme (final salary) were correctly subject to VAT.


Whilst the decision was made in a Danish case, the decision has direct effect in the UK, and pension schemes should be contacting their fund managers and asking them to issue credit notes and reimburse the over charged VAT for the last four years.

For further information please contact Phil Salmon, VAT partner.