The VAT exemption for fund management will be amended with effect from 1 October 2008. The revised exemption will apply to fund management services of:
• authorised unit trusts schemes;
• open-ended investment companies;
• recognised overseas schemes within sections 264, 270 and 272 of FSMA 2000; and
• closed-ended investment entities which invest primarily in securities and whose shares are listed and traded on a regulated UK stock exchange (this includes investment trust companies and venture capital trusts).
The above are investment undertakings with either fixed (closed-ended) or variable (open-ended) capital, subject to regulation and whose shares or units are available for investment by the general public.
HMRC intend to invite comment from stakeholders on the detail of draft legislation and guidance, which will be published around the beginning of April.
