Management of a defined benefit pension scheme
This section outlines the Value-Added Tax (VAT) treatment of the management services supplied to defined benefit pension schemes.
The management (as defined) of special investment funds is generally exempt from VAT. However, the Court of Justice of the European Union (CJEU) ruled that a defined benefit scheme cannot be regarded as a special investment fund.
Therefore, fund managers should charge VAT on management services supplied to such schemes.
Further guidance contains more detailed information on the VAT treatment of the management services supplied to defined benefit pension schemes.