The outcome of a court case has led an industry organisation to recommend that services provided by investment managers to occupational pension schemes should be VAT exempt.
JPMorgan Fleming Claverhouse Investment Trust and the Association of Investment Companies brought the case against HM Revenue and Customs (HMRC) at the European Court of Justice (ECJ)
Following advice, the National Association of Pension Funds (NAPF) has called for the industry to challenge HMRC's view that VAT should be charged on these services.
Chief executive Joanne Segars said: "After the clarification from the ECJ, there is a strong case that pension funds should not have to pay VAT on investment management services.
"Instead, they would be able to use these savings to benefit their members."
She suggested there was strength in prsenting a united front and funds profit from coming together and challenging HMRC.
NAPF has more than 1,300 members that provide pensions to in excess of ten million people.
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