Hogan Lovells

Key Dates

The Value Added Tax (Finance) (EU Exit) Order 2019/43 due to come into force on 29 March 2019 but subsequently revoked.


The Value Added Tax (Finance) (EU Exit) (Revocation) Order 2019/1014 in force on 8 July 2019.


Summary

The government has made regulations to remove inconsistencies between EU and UK law concerning the VAT treatment of the management of defined contribution (DC) pension funds. 

The 2019/43 regulations created a VAT exemption for management of a "recognised pension fund", defined as a pension fund which:
• is funded solely by or on behalf of pension members;
• the  pension members bear the investment risk;
• the fund contains the pooled contributions of more than one pension member; and
• the risk borne by members is spread over a range of investments.

The 2019/43 regulations were due to have effect from 29 March 2019 but were subsequently revoked by the 2019/1014 regulations following the postponement of Brexit.  The government intends to make further regulations to bring the same changes into effect from a specified date (potentially, 1 April 2020).



Date Accessed: 03/12/2021