- Performance Leads Limited provides lead generation services to independent financial advisors.
- Individuals seeking financial advice submit their requirements through PL’s websites.
- PL refers these individuals to relevant IFAs and receives a fee per lead.
- PL initially considered its services as standard-rated but later claimed they were VAT exempt.
- HMRC refused PL’s claim for overpaid VAT.
- The First-tier Tribunal ruled that PL’s services were VAT exempt.
- HMRC argued PL was providing standard-rated advertising services.
- The FTT determined PL was acting as an intermediary, not just advertising.
- PL assessed the suitability of inquirers for IFAs’ services.
- The FTT allowed PL’s appeal, confirming its role as an intermediary.
Source: taxscape.deloitte.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.
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