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

Document Number:2019 No. 43

Statutory Instruments

Exiting The European Union

Value Added Tax


15 th January 2019

Laid before the House of Commons

17 th 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—

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

    the pension members bear the investment risk;

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

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

  5. After Note (6 A) insert—

    “(6 B) 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

    15 th January 2019


    (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...

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