Supreme Court provides definitive ruling that outsourced loan administration services provided to a bank are standard rated

This judgment marks the end ofthe line for Target Group (“Target”), which lost appeals in the First Tier Tribunal, Upper Tribunal, Court of Appeal and now the Supreme Court.

Target Group administers loans made by Shawbrook Bank. Target’s services include operating individual loan accounts and instigating and  processing payments due from borrowers. The appeal concerns whether the outsourced loan administration services provided by Target fall within  the VAT exemption for financial services.

Source Grant Thornton

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