The FTT has decided in the case of Intelligent Money Limited (IML) (UKFTT 148 (TC)) that fees paid by members of the SIPP to IML as the scheme administrator were not consideration for an exempt supply of insurance and were therefore subject to VAT.
Until 2014, IML had accounted for VAT on its services to members of the SIPP. In 2016, IML undertook a review of its VAT position and considered that the service it was supplying was one of long-term insurance and therefore exempt from VAT. IML subsequently submitted three claims to HMRC to recover the VAT it considered had been overpaid.
Source Saffery
