Since the decision of the Court of Justice of the European Union (CJEU) in PPG Holding BV cs  te Hoogezand1, HMRC has issued a number of Business Briefs (see Brief 43/14 and Brief 08/15) setting out its position regarding an employer’s ability to deduct VAT incurred on pension fund management costs.

On 26 October 2015, HMRC published Brief 17/15, which announced a 12 month extension to the transitional period, which was due to end on 31 December 2015, for pension schemes to restructure existing arrangements so as to maximise input tax recovery on fund management and administration services.

This latest Brief also provides an update on HMRC’s position regarding possible arrangements for employers to achieve VAT deduction for the costs of administering occupational pension schemes and managing their assets going forward.

Brief 17/15 is available to view here.