The recent Upper Tribunal decision in BlackRock Investment Management (UK) Ltd v HMRC about the Aladdin investment management platform raises important issues in two key areas relevant for partly exempt businesses generally and for asset management businesses in particular: when can the provision of a technology platform qualify as a substantive VAT exempt financial service? And in what circumstances could a single supply have more than one VAT liability with elements that remain VAT exempt even where the majority are taxable. Businesses and their advisers should now consider the potential implications for VAT treatments elsewhere and take steps where appropriate to protect their position.
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The recent Upper Tribunal decision in BlackRock Investment Management (UK) Ltd v HMRC about the Aladdin investment management platform raises important issues in two key areas relevant for partly exempt businesses generally and for asset management businesses in particular: when can the provision of a technology platform qualify as a substantive VAT exempt financial service? And in what circumstances could a single supply have more than one VAT liability with elements that remain VAT exempt even where the majority are taxable. Businesses and their advisers should now consider the potential implications for VAT treatments elsewhere and take steps where appropriate to protect their position.
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
