In the case of United Biscuits (Pension Trustees) Limited v Commissioners for HMRC, the court has rejected a pension fund trustee's claim that pension fund management services provided by non-insurers are entitled to an exemption from VAT by reason of EU law.  

The trustee had argued that as a matter of EU law such services were insurance transactions and therefore attracted a mandatory exemption from VAT, but this argument was rejected.  HMRC currently treats pension fund management services provided by insurance companies as VAT exempt, but as reported under "VAT developments" in our Update, is ending this practice in relation to defined benefit schemes from 1 April 2019 following the UK's exit from the EU.