IFM02600 - Authorised investment funds (AIFs): VAT

VAT is not chargeable on management fees charged to an AIF under Group 5 of Schedule 9 to the VAT Act 1994.

The VAT treatment of AIFs’ 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.