We have previously reported on HMRC's altered approach to pension schemes and VAT following the decision of the Court of Justice of the European Union in the PPG case.


On 26 March 2015 HMRC issued a brief outlining the circumstances in which HMRC will accept that a sponsoring employer of a defined benefit scheme is entitled to a VAT deduction in respect of the cost of fund management services. The brief considers the use of tripartite contracts between the employer, scheme trustees and fund manager, but in the absence of more comprehensive guidance there continues to be a lack of clarity around the issue of pensions and VAT. HMRC says it intends to provide further guidance in the summer.

Key contacts

Rachel Rawnsley

Rachel Rawnsley

Partner, Head of Pensions
United Kingdom

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Jade Murray

Jade Murray

Partner, Pensions
United Kingdom

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Catherine McAllister

Catherine McAllister

Partner, Pensions
United Kingdom

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Rachel Uttley

Rachel Uttley

Partner, Pensions
United Kingdom

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