ING Intermediate Holdings Ltd v HM Revenue and Customs [2017] EWCA Civ 2111 (13 December 2017)

ING Intermediate Holdings Ltd v HM Revenue and Customs [2017] EWCA Civ 2111 (13 December 2017)

IDUK's deposit-taking business constituted the exempt business of banking services. The facilities provided to depositors went beyond a mere promise to repay and amounted to a supply of banking services. Consideration was provided by depositors through their agreement to the terms, including the interest rate, and this consideration was capable of being expressed in monetary form. The contractual terms reflected the true agreement and economic reality; thus, the appeal was dismissed.

Citation
[2017] EWCA Civ 2111
Parties
Appellant: ING Intermediate Holdings Limited; Respondents: The Commissioners for Her Majesty's Revenue and Customs
Jurisdiction
England and Wales
Judgment Date
13 December 2017
Procedural Posture
VAT Recovery Appeal (tax) / Appeal From Upper Tribunal (tax and Chancery Chamber) to Court of Appeal
Outcome
Appeal dismissed
Legal Topics
Value Added Tax (vat), Banking Services, Consideration in VAT, Supply of Services, Input Tax Deduction, Composite and Ancillary Supplies
Tax Law European Union Law Value Added Tax (vat) Banking Services Consideration in VAT Supply of Services Input Tax Deduction Composite and Ancillary Supplies

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Parties

ING Intermediate Holdings Limited

Appellant

The Commissioners for Her Majesty's Revenue and Customs

Respondents

Procedural Posture

VAT Recovery Appeal (tax) / Appeal From Upper Tribunal (tax and Chancery Chamber) to Court of Appeal

Legal Issues

  1. 1 Whether IDUK supplied services or merely received deposits for VAT purposes
  2. 2 Whether services were provided for consideration
  3. 3 Whether consideration can be expressed in monetary form

Ratio Decidendi

IDUK's deposit-taking business constituted the exempt business of banking services. The facilities provided to depositors went beyond a mere promise to repay and amounted to a supply of banking services. Consideration was provided by depositors through their agreement to the terms, including the interest rate, and this consideration was capable of being expressed in monetary form. The contractual terms reflected the true agreement and economic reality; thus, the appeal was dismissed.

Court Disposition

Appeal dismissed

Orders

  • The appeal is dismissed.