On March 1 2007, in a preliminary ruling from a VAT Tribunal, the Advocate General's (AG) Opinion was delivered in JP Morgan Fleming Claverhouse Investment Trust plc and The Association of Investment Trust Companies v Commissioners of HM Revenue and Customs (Case C-363/05). The point at issue was the extent of the VAT exemption for management of special investment funds as defined by member states conferred by Article 13B(d)(6) of the Sixth VAT Directive. The exemption provided in VAT Act 1994 (Items 9 and 10 Group 5 VATA 1994) applies to open-ended collective investment schemes such as Authorised Unit Trusts (AUTs) and Open-ended Investment Companies (OEICs), but not to closed entities such as Investment Trust Companies (ITCs). The taxpayer is an ITC which receives management services from a third party which are treated as chargeable to VAT.
March 31 2007