This was a favourable VAT ruling for independent trustees acting for an occupational pension scheme in winding-up where the sponsoring employer was insolvent. The appeal of Capital Cranfield Trustees Limited (CCTL) against HMRC’s refusal to allow a claim for a refund of overpaid VAT was upheld by the VAT tribunal. The tribunal ruled that CCTL (in its capacity as trustee) was entitled to deduct the VAT charged on the fees paid to third party professionals. The impact of this decision is that professional pension fund trustees may be able to recover input tax on a broader range of services supplied to them, although it is possible that HMRC may lodge an appeal.
View the VAT tribunal ruling