VAT Tribunal
3rd July 2015Charities VAT:Â investment management fees are now reclaimable.
A tribunal finding in favour of Cambridge University Endowment Fund could lead to financial benefit for a host of charities who have previously been unable to reclaim input VAT on ‘non-business’ investment fund fees. The Cambridge University Endowment Fund argued that it could reclaim some of the VAT it paid for investment management fees because the income supported all the university’s activities, some of which were business activities.
Historically charities have not been able to reclaim input VAT on the services they buy in because not all of the activities are business related, they do not charge people for providing them, or because they are exempt from VAT. Charities are advised to consider putting in a claim to H M Revenue and Customs as soon as possible to maximise their potential repayment. Claims can be made going back four years.
Disclaimer - All information in this post was correct at time of writing.
