ADVERTISEMENT

UK: Gov’t faces pension-fund tax challenge

Banking

The government faces a legal challenge over tax on pension funds, which if successful, could see hundreds of million of pounds returned to occupational pension schemes, a pension lobby group said on Monday.

The Wheels Common Investment Fund, an £8 billion multi-employer scheme covering the UK car industry, and the National Association of Pension Funds (NAPF) are to challenge HM Revenue & Customs over valued-added tax paid by occupational pension schemes, the NAPF said. If the challenge is successful, the UK pensions industry could win back up to £300 million in backdated tax paid over the past three years, the NAPF said. They could also reclaim tax paid in the early 1990s and save an estimated £100 million a year in tax going forward, the NAPF added.

The NAPF and Wheels, which includes Ford’s UK pension scheme as well as those of Jaguar and Land Rover, believe that occupational pension funds should be exempt from paying VAT on investment management services, the NAPF said. Their challenge follows a ruling in the European Court of Justice, which stated that investment trusts should be exempt from this tax. The beneficiaries would primarily be private sector defined-benefit pension schemes with segregated investments, the NAPF said. (Reuters)

ADVERTISEMENT

Rate-setters augur slower decline in CPI in 2022 Analysis

Rate-setters augur slower decline in CPI in 2022

Lawmakers approve residency permit for digital nomads Parliament

Lawmakers approve residency permit for digital nomads

Magyar Bankholding chairman to serve as CEO as well Appointments

Magyar Bankholding chairman to serve as CEO as well

ITM, capital gov't agree on support for public transport City

ITM, capital gov't agree on support for public transport

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.