HMRC have set out their VAT position following the decision of the Court of Justice of the European Union (CJEU) in Fiscale Eenheid PPG Holdings BV cs te Hoogezand (C-26/12). The case concerned an employer’s entitlement to deduct VAT paid on services relating to the administration and management of a defined benefit pension scheme.

The CJEU ruled that – subject to certain conditions – the employer was entitled to deduct VAT it paid on services relating to the administration of employees’ pensions and management of the …