IFM10600 | Taxation of unauthorised unit trusts (UUTs): VAT

VAT is chargeable on management fees charged to an UUT: these services do not fall within the scope of VAT exemption in Group 5 of Schedule 9 to the VAT Act 1994.

The VAT treatment of UUTs investment transactions depends on the nature of the goods or services supplied and the extent to which VAT paid on costs can be reclaimed.

HMRC’s VAT guidance from VATFIN5000 provides an introduction to these and other VAT issues.