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VAT & BPR products

james_macaulayjames_macaulay Member
in Technical stuff

Hi all

I have been looking at the VAT position of the above and believe given the structure they are DFM services as per section 8.1 of the Octopus Terms and Conditions below:

https://media.octopusinvestments.com/m/7cf643fdd064e548/original/Octopus-Inheritance-Tax-products-terms-and-conditions.pdf

This seems quite consistent with the rest of the market; however Triple Point call themselves an Alternate Investment Fund in section 5.1 of their Investor Agreement and I am not sure if this changes anything.

https://triplepoint.co.uk/estate-planning-solutions/s709/

Has anybody looked into this before?

Thanks

James

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Comments

  • TomLloyd_ReadTomLloyd_Read Member

    HI James

    For what its worth, in my previous firm we applied VAT to fees for AIFs (mostly initial fees for EIS) as I think we came to the the conclusion they they are not retail investment products so there has been no intermediation and no VAT exemption. Can't recall why they are not a RIP though...

    Cheers

    Tom.

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  • richardgoughrichardgough Member

    @james_macaulay The agreement you refer to states it is a discretionary management service - so VAT applies to the fees. Ther is no fund.

    The use of the word 'Fund' is in relation to the Alternative Investment Fund Managers Directive. It is (in v simple terms) a way of categorising the DFM offering in line with a set of EU Directove rules.

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  • james_macaulayjames_macaulay Member

    Thanks Tom & Richard, this is in line with my thinking but good to check.

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