OpenLegislation

The Value Added Tax (Finance) Order 2020

S.I. 2020/209 · Made 3 March 2020

Original text. legislation.gov.uk does not revise statutory instruments, so later amendments are not shown here. Changes made to it are listed under each provision when known.

Value Added Tax

Made 3rd March 2020

Laid before the House of Commons 4th March 2020

Coming into force 1st April 2020

The Treasury make the following Order in exercise of the powers conferred by sections 31(2) and 96(9) of the Value Added Tax Act 1994f1.

Annotations to the whole text

Footnotes

f1

1994 c. 23.

Contents

  1. 1Citation and commencement
  2. 2Amendment of Group 5 of Schedule 9 to the Value Added Tax Act 1994
  3. 3Amendment of Group 5 of Schedule 9 to the Value Added Tax Act 1994
  4. 4Amendment of Group 5 of Schedule 9 to the Value Added Tax Act 1994
  5. 5Amendment of Group 5 of Schedule 9 to the Value Added Tax Act 1994
  6. Signature
  7. Explanatory note

1Citation and commencement

This Order may be cited as the Value Added Tax (Finance) Order 2020 and comes into force on 1st April 2020.

2Amendment of Group 5 of Schedule 9 to the Value Added Tax Act 1994

Group 5f1 of Schedule 9 to the Value Added Tax Act 1994 (exemptions: finance) is amended as follows.

3Amendment of Group 5 of Schedule 9 to the Value Added Tax Act 1994

In Item 9 insert after paragraph (j)—

“; or

(k)

a qualifying pension fund.”.

4Amendment of Group 5 of Schedule 9 to the Value Added Tax Act 1994

In Note (6)—

(a)

in the definition of “closed-ended collective investment undertaking”, in paragraph (a) omit “, wholly or mainly in securities”;

(b)

in the appropriate place insert both—

  • ““pension member” means, in relation to a qualifying pension fund, a person to or in respect of whom retirement benefits are to be paid from the fund;”;

  • ““qualifying pension fund” means a pension fund in relation to which all of the following conditions are satisfied—

    1. (a)

      it is solely funded, whether directly or indirectly, by pension members;

    2. (b)

      the pension members bear the investment risk;

    3. (c)

      the fund contains the pooled contributions of more than one pension member;

    4. (d)

      the risk borne by the pension members is spread over a range of investments; and

    5. (e)

      the fund is established in the United Kingdom or in a member State;”.

5Amendment of Group 5 of Schedule 9 to the Value Added Tax Act 1994

After Note (6A) insert—

“(6B)

For the purposes of Note (6), a pension fund is funded indirectly where contributions are made by a third party on behalf of a pension member.”.

Signature

Iain Stewart

Rebecca Harris

Two of the Lords Commissioners of Her Majesty’s Treasury

3rd March 2020

Explanatory note

(This note is not part of the Order)

This Order amends Group 5 of Schedule 9 to the Value Added Tax Act 1994 (exemptions: finance) to (i) extend exemption to the management of what are termed ‘qualifying pension funds’ and (ii) remove the restriction on the type of assets that a close-ended collective investment undertaking can invest in in order for its management to qualify for exemption.

A Tax Information and Impact Note covering this instrument will be published on the website at https://www.gov.uk/government/collections/tax-information-and-impact-notes-tiins.