- HMRC will maintain a list-based approach to the VAT exemption for fund management
- The government published a consultation on the VAT treatment of fund management services in December 2022
- The proposed approach is to keep the current list of exempt fund types and include criteria for special investment funds
- HMRC has published a summary of responses to the consultation, which suggested that the proposed principle-based approach would cause confusion
- The government believes that existing UK VAT legislation covers the majority of fund types and the current approach provides sufficient legal certainty
- The government will consider the fund management industry’s request for greater certainty around the definition of ‘management’ of a fund during the review of current guidance.
Source: icaew.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
