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

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

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;”.