In United Biscuits (Pension Trustees) and another v HMRC [2017] EWHC 2895 (30 November 2017) the High Court found that the management of group pension funds does not fall within the exemption provided by the Principal VAT Directive Art 135(1)(a).
The trustees of two pension funds sought to recover VAT paid to investment managers. These managers included both companies authorised to conduct insurance business (‘insurers’) and companies not so authorised (‘non-insurers’). Pension fund management services had been treated by HMRC as exempt when provided by insurers but as standard-rated when provided by non-insurers.
The trustees’ case was that the supplies made by non-insurers were exempt insurance transactions under the Principal VAT Directive. However UK legislation had failed to provide for the exemption required by the VAT Directives and the trustees had paid VAT which was not due. They claimed that their directly enforceable right to the exemption...
