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NAPF takes VAT battle to Europe court

The National Association of Pension Funds is mounting a legal challenge against HM Revenue & Customs in the European Court of Justice to challenge whether defined-benefit pension funds should be charged VAT on investment management services.

DB pension funds pay an estimated £100m a year in VAT. The NAPF, together with Ford’s UK pension scheme Wheels Common Investment Fund, is contesting the VAT liability.

Investment management services provided through pooled funds and insurance wrappers are already VAT exempt, meaning defined contribution schemes do not usually pay VAT on investment management services, however defined benefit schemes do.

The case was launched in 2008 following an ECJ ruling involving the JP Morgan Fleming Claverhouse Investment Trust. The court ruled that investment trusts were special investment funds and so should be exempt from VA on investment management services.

In February, a tribunal hearing was held in London which decided the ECJ should define the wider implications of that exemption, and what that means for DB funds.

Since then the tribunal, the NAPF and Wheels have been working on the factual outline of the case and the questions which will form the basis of the ECJ’s interpretation of European Union law.

The case was formally referred to the ECJ in August.

NAPF chief executive Joanne Segars says: “We are pleased the case is going to the ECJ and we feel we have a strong case.

“Pension funds should consider working with their investment managers to ensure that any overpaid VAT on investment management services will be protected.”


Mark Harris joins Eden Financial

Eden Financial has appointed former Henderson head of multi-manager Mark Harris to jointly manage the company’s existing multi-asset fund, Money Marketing can reveal. He will co-manage the £66.6m CF Eden global multi-strategy fund alongside Chris Jaques and is joining on September 12. Jaques currently runs the fund for the private client side of the Eden […]

OMAM hires Kevin Lilley from Royal London

Old Mutual Asset Management has poached Kevin Lilley to manage its £71m European equity fund. Lilley joins from Royal London Asset Management where he manages the £641m European growth fund. The fund is currently top quartile in the IMA Europe ex-UK sector over three years. Lilley joined RLAM in 2001 and has over 20 years’ […]

Ignore CPD at your peril

CPD used to be a bit of an industry joke. We’ve all heard tales of the lie sheets, skimming the Pinks and last minute scrambles to complete records before a visit. All in all a requirement rarely checked and barely valued. Well, the CPD worm has turned. Continuing professional development is the central tenet behind […]


Economists call on Osborne to scrap 50p rate

A group of 20 economists is calling on the Government to scrap the 50p tax rate at the earliest opportunity to help stimulate growth in the economy. It comes after Chancellor George Osborne last night admitted the short term prospects for growth had worsened over recent weeks. In a letter to the Financial Times, the […]

Brexit Commentary from Natixis Global Asset Management

By David F Lafferty, CFA, SVP – Chief Market Strategist Thursday’s historic Leave vote in the UK will have both immediate and long-term consequences for the global economy and financial markets. The initial flight-to-quality reaction across asset classes has been exacerbated by the market’s misplaced confidence in a Remain victory leading up to the vote. Stock markets […]


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