Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

VAT definition

What does VAT mean? VAT is a consumption tax on most supplies of goods and services made by taxable businesses to businesses or consumers. In practice, it underpins pricing (plus VAT), invoicing, cross‑border trade and many property transactions. The charge and key concepts are set out in the UK Value Added Tax Act 1994 and, in Ireland, the Value‑Added Tax Consolidation Act 2010 (implementing the EU VAT Directive). In Northern Ireland, EU VAT rules continue to apply to goods under the Windsor Framework; services follow UK rules. Core features include: output tax charged at standard, reduced or zero rates; exempt supplies (for example, certain...

UK VAT and Private Equity Limited Partnerships: Investments, Transfers, General Partner Profit Share, Management/Advisory Services, Special Investment Funds Exemption, VAT Grouping and Place of Supply

Published by a LexisNexis Tax expert

Practice notes

This Practice Note explores VAT matters encountered in the Private equity Fund arena. It proceeds on the basis of a standard UK private equity fund arrangement, with the vehicle established as a limited partnership. (For a deeper look at how a typical UK private equity fund is put together, see Practice Note: Tax and private equity funds—fund structure.) This Practice Note reviews the VAT position for:

investing in a limited partnership fund
transferring interests in a limited partnership fund
the general partner’s priority profit share
whether VAT is payable on supplies of advisory and management services to a private equity fund

For broader VAT background, see Practice Note: VAT basic principles—overview.

Relevance of EU law

This Practice Note refers to EU Directives and Court of Justice of the European Union (CJEU) decisions. For guidance on the extent to which EU jurisprudence remains relevant for UK taxpayers after Brexit, see Practice Notes: Assimilated law and Assimilated law and tax. When the UK ceased to be an EU Member State on 31 January 2020, the UK entered a Brexit implementation period (IP) during which it continued to be treated as a...

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Emily Clark

Travers Smith

Emily trained at Travers Smith and is a partner in the tax group. She specialises in the taxation of investment funds acting for private equity houses, hedge funds and real estate funds.She advises on fund formation and on tax-efficient structures for fund managers, carried interest and LLP conversions. She has particular expertise in tax structuring for non-domiciled investors and fund managers.Emily also has extensive experience of group restructuring, international tax, joint ventures and real Emily is a member of the British Property Federation´s tax committee....

Web page updated on 22/05/2026

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