The Value Added Tax (Finance) Order 2020

• Citation: S.I. 2020/209
• Sections: 5

Section 1 Citation and commencement

This Order may be cited as the Value Added Tax (Finance) Order 2020 and comes into force on 1st April 2020.

Section 2 Amendment of Group 5 of Schedule 9 to the Value Added Tax Act 1994

Group 5 of Schedule 9 to the Value Added Tax Act 1994 (exemptions: finance) is amended as follows.

Section 3 Amendment of Group 5 of Schedule 9 to the Value Added Tax Act 1994

In Item 9 insert after paragraph (j)—

; or

(k) a qualifying pension fund.

Section 4 Amendment of Group 5 of Schedule 9 to the Value Added Tax Act 1994

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 qualifying pension fund, a person to or in respect of whom retirement benefits are to be paid from the fund;”;

““qualifying 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;

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

the fund is established in the United Kingdom or in a member State;

Section 5 Amendment of Group 5 of Schedule 9 to the Value Added Tax Act 1994

After Note (6A) insert—

(6B) 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.