Without publicising the fact, HMRC has effectively performed a U-turn in relation to its position regarding VAT on pension scheme services, to a business as usual position. For more detail, see our e-bulletin.

Separately, HMRC has announced that from 1 April 2019 (ie after the UK has left the EU) it will end its policy of treating pension fund management services provided by insurance companies in relation to defined benefit schemes as exempt from VAT. (The exemption will generally continue for services provided to defined contribution schemes.) The change was originally due to have taken effect from 1 January 2018.