Sixty Second Summary
Pensions VAT: guidance revised
10 Nov 2017 - Estimated reading time: 10 minutes
Her Majesty’s Revenue and Customs (HMRC) has (without fanfare) updated sections of its internal guidance on the ability of employers to reclaim VAT expended on pension scheme costs. Most notably, taxpayers will not be required to implement new arrangements in order to facilitate VAT deduction after 31 December 2017: the ability to use historical pensions VAT practices will continue, seemingly indefinitely. However, alternative arrangements may need to be considered in order to maximize the VAT reclaimable. This issue mainly affects defined benefit (DB) schemes.