- Intelligent Money Limited argued that their fees for the administration of a SIPP could be exempt from VAT under the Insurance VAT Exemption.
- The firm originally accounted for VAT on these fees but later submitted a claim for the “overpaid” VAT, which was dismissed by the First Tier Tribunal and the Upper Tribunal.
- The case report can be accessed for more details.
- VAT liabilities in the financial and insurance services sector can be complex.
- The case suggested that the fees paid were considered a “premium” similar to insurance contracts, but the Upper Tribunal did not agree.
- European case law has specific criteria for determining VAT exemptions, which the Upper Tribunal did not believe were met in this case.
- The service provided by Intelligent Money Limited was considered outside of any VAT exemption.
Source: centurionvat.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
