HMRC has announced guidance on the use of tripartite arrangements for employers, pension scheme trustees and providers of pension fund management services in respect of defined benefit schemes. If certain minimum criteria are met, employers can rely on tripartite contracts to recover the VAT on pension fund management services (subject to the usual partial exemption rules). HMRC has announced that further guidance will be published in the summer in respect of other types of pension scheme services and related issues. Employers and pension scheme trustees may rely on the pre-existing guidance in VAT Notice 700/17 until 31 December 2015, after which it is to be withdrawn. Employers and pension scheme trustees need to act now to work out whether to adopt tripartite arrangements or to consider what other options may exist for VAT recovery from 1 January 2016.
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