Funded pension schemes - VAT on administration costs
We reported last week that Customs were set to withdraw the "70/30" rule, which is used to allocate VAT on the management of funded pension schemes, with effect from 1 0ctober 2005. Following representations from the IMA (Investment Management Association) Customs have announced that they will delay the withdrawal of this rule until 1 January 2006. In the meantime Customs will be consulting with representatives of the asset management industry as to how existing guidance may be clarified.
Sales in Customs Warehouses
The new rules, allowing Customs to deny VAT free status to some sales taking place in Customs warehouses, will come into effect on 1 September 2005. This will lead to increased costs for those businesses affected.
