Search Legislation

The Value Added Tax (Finance) (EU Exit) Order 2019

What Version

 Help about what version
  • Latest available (Revised)
  • Original (As made)

Opening Options

 Help about opening options

Status:

This is the original version (as it was originally made). This item of legislation is currently only available in its original format.

Statutory Instruments

2019 No. 43

Exiting The European Union

Value Added Tax

The Value Added Tax (Finance) (EU Exit) Order 2019

Made

15th January 2019

Laid before the House of Commons

17th January 2019

Coming into force in accordance with article 1

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 1994(1).

Citation and commencement

1.  This Order may be cited as the Value Added Tax (Finance) (EU Exit) Order 2019 and comes into force on exit day(2).

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

2.  Group 5(3) of Schedule 9 to the Value Added Tax Act 1994 (exemptions: finance) is amended as follows.

3.  In Item 9 insert after paragraph (j)—

; or

(k)a recognised pension fund..

4.  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 recognised pension fund, a person to or in respect of whom retirement benefits are to be paid from the fund;”;

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

(a)

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

(b)

the pension members bear the investment risk;

(c)

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

(d)

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

5.  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..

Craig Whittaker

Rebecca Harris

Two of the Lords Commissioners of Her Majesty’s Treasury

15th January 2019

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 ‘recognised 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.

It ensures that the scope of the United Kingdom’s exemption for the management of pension funds reflects the scope of the exemption as provided for in European law in accordance with United Kingdom tax policy.

This instrument will be covered by an overarching HMRC impact assessment on VAT and services which will be published and available on the website at https://www.gov.uk/government/collections/customs-vat-and-excise-regulations-leaving-the-eu-with-no-deal.

(2)

Section 20(1) of the European Union (Withdrawal) Act 2018 (c. 16) defines ‘exit day’ as meaning 29 March 2019 at 11.00 p.m..

(3)

Item 9 and Note (6) were substituted by S.I. 2008/2547 and have been amended by S.I. 2013/1402 and 2013/1773; Note (6) was amended by paragraph 81 of Schedule 18 to the Financial Services Act 2012 (c. 21) by virtue of S.I. 2013/423 and Note (6A) was inserted by S.I. 2008/2547.

Back to top

Options/Help

Print Options

Close

Legislation is available in different versions:

Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.

Original (As Enacted or Made):The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.

Close

Opening Options

Different options to open legislation in order to view more content on screen at once

Close

Explanatory Memorandum

Explanatory Memorandum sets out a brief statement of the purpose of a Statutory Instrument and provides information about its policy objective and policy implications. They aim to make the Statutory Instrument accessible to readers who are not legally qualified and accompany any Statutory Instrument or Draft Statutory Instrument laid before Parliament from June 2004 onwards.

Close

More Resources

Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as enacted version that was used for the print copy
  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • correction slips
  • links to related legislation and further information resources
Close

More Resources

Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as made version that was used for the print copy
  • correction slips

Click 'View More' or select 'More Resources' tab for additional information including:

  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • links to related legislation and further information resources