HMRC revises policy on VAT paid by investment trusts | Practical Law

HMRC revises policy on VAT paid by investment trusts | Practical Law

In June 2007, the European Court of Justice (ECJ) held in JP Morgan Fleming Claverhouse Investment Trust plc v HMRC (Case C-363/05) that management fees charged to UK investment trusts should be exempt from VAT. Following this decision, HMRC has announced that it has withdrawn from the appeal, and that it accepts that fund management services supplied to investment trust companies (ITCs) are exempt.

HMRC revises policy on VAT paid by investment trusts

Practical Law UK Legal Update 2-378-8000 (Approx. 5 pages)

HMRC revises policy on VAT paid by investment trusts

by PLC Tax
Published on 09 Nov 2007 • England, Wales
In June 2007, the European Court of Justice (ECJ) held in JP Morgan Fleming Claverhouse Investment Trust plc v HMRC (Case C-363/05) that management fees charged to UK investment trusts should be exempt from VAT. Following this decision, HMRC has announced that it has withdrawn from the appeal, and that it accepts that fund management services supplied to investment trust companies (ITCs) are exempt.