A&M Indirect Tax services

The interaction between VAT and fund management can be complex and challenging, as it depends on several factors, notably: -  

• the type of fund, 
• the location of the fund manager, 
• the location of the fund vehicle, and 
• the type of services provided.

The underlying VAT liability of fund management has been the subject of much case law and guidance. 

One of the hottest topics in the VAT and fund management area is the VAT exemption applied to the management of “Special Investment Funds” or “SIFs”. The definition of a SIF is not always clear or consistent across the UK and EU, and this has resulted in uncertainty across the marketplace.

There has been a raft of legal changes to the UK VAT treatment of fund management in recent years, making it challenging for fund managers to keep up with the developments. 

How can A&M add value? 

• Utilize market-leading technology to reduce time and save costs by automating VAT compliance, providing an end-to-end service solution for managing VAT return compliance
• Analyse the commercial operations of a fund structure to mitigate VAT leakage in UK structures 
• Propose restructuring fund investments to optimise the VAT position 
• Advise on VAT changes in a field of rapidly evolving financial regulation and change
• Guidance on VAT treatment and application for general partners in fund structures
• Support on making informed decisions about VAT grouping and the potential issues that arise, based on our practical experience dealing with HMRC on this issue 
• Liaison with the UK tax authority (HMRC) including dealing with enquiries, disputes, penalties, and interest charges

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