Hm Treasury
Detail of outcome
The government has published a response to the consultation on the VAT treatment of fund management.
In total 37 written responses were received. Responses came from a variety of stakeholders, including suppliers and recipients of fund management services, law firms, and trade associations. To further clarify and supplement these written submissions, government officials met 9 industry stakeholders.
Respondents were supportive of the governments intention to retain Items 9 and 10, and generally suggested that a list-based approach would provide greater clarity and leave less room for interpretation. The government therefore considers that retaining a list-based approach of Items 9 and 10 of Group 5 Sch. 9 of the Value Added Tax Act 1994 meets the stated aims of providing clarity, certainty, and simplicity.
Original consultation
Consultation description
Following a Budget 2020 announcement, the government examined options for reforming the VAT treatment of fund management services. The technical consultation document sets out proposals for reform of the VAT rules on fund management. These reforms are not intended to result in policy change but are intended to improve the legislative basis of the VAT treatment of fund management. The consultation seeks input on whether the proposed changes achieve the objective of codifying the existing policy to give legal clarity and certainty.
