VAT for DB schemes

Trustees Agenda posted on 8 November, 2017

HMRC has updated its internal guidance on DB scheme VAT recovery, but this is only available to its own staff and has not been shared with parties who have been awaiting clarification of the policy, such as trustees and employers.

The guidance now suggests that employers will need to become contractual partners to investment services provided to a pension scheme in order to reclaim the tax, noting current pension regulations prohibit sponsors from being the sole party to scheme investment contracts.