UT Confirms Self-Invested Pension Plans Not Exempt from VAT as “Insurance Transactions”

• Intelligent Money Ltd (IML) supplied services for self-invested pension plans (SIPPs)
• IML argued that their services fell under the exemption from VAT for insurance transactions
• HMRC determined that IML’s services did not qualify for the exemption
• IML appealed to the FTT, which dismissed their appeal
• IML then appealed to the UT
• The UT dismissed IML’s appeal, stating that insurance transactions involve an insurer providing protection from specified risks
• None of the SIPP members’ payments were seen as risk premiums, and the fees collected were primarily for administrative services
• The UT noted that the Fuji case was not made in the context of a VAT exemption
• This case confirms that for VAT purposes, an ‘insurance transaction’ must involve the assumption of risk by someone other than the insured.

Source: rpc.co.uk

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.

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