According to reports in the
pension news today, the
pensions industry has waded into a massive £300 million lawsuit against HMRC. The court case demands that
occupational pensions must receive the same concessions on
VAT as
investment funds .
The favourable
tax treatment of
investment funds has urged pensions claimants to make their case. Joanne Segars, the chief executive of the National Association of
Pension Funds (NAPF), was reported as commenting: After last year's ECJ Judgement there is a strong case that defined benefit
occupational pension funds should be exempt from paying VAT on
investment management services.
If the case goes through successfully,
the pension funds sector could receive hundreds of millions in backdated VAT
claims from the past three years.
