- The Supreme Court ruled that Prudential must pay VAT on £9.3 million in success fees.
- This decision sets a new standard for how insurers handle VAT on success fees after group restructurings.
- The case involved success fees paid to Silverfleet Capital Limited after it left Prudential’s VAT group.
- HMRC initially decided VAT was due, and this was upheld by the Upper Tribunal and the Court of Appeal.
- The Supreme Court confirmed that VAT was payable as the success fees were invoiced after Silverfleet’s departure from the VAT group.
Source: insurancebusinessmag.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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