Intelligent Money Limited v The Commissioners for HMRC

Intelligent Money Limited v The Commissioners for HMRC

The fees paid by members of the IM SIPP are not consideration for an exempt insurance transaction under VAT law because the Appellant does not assume any financial risk; the services provided are administration of the member’s own assets held in trust, and the exemption applies only where the supplier assumes risk...

Source-derived case information.

Parties
Appellant: Intelligent Money Limited; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
England and Wales
Judgment Date
25 February 2022
Procedural Posture
Tax Appeal / First Tier Tribunal Judgment
Outcome
Appeal dismissed
Legal Topics
VAT Exemption, Insurance Transactions, Pension Scheme Administration, SIPP, Fiscal Neutrality
Tax Law Pensions Law European Union Law VAT Exemption Insurance Transactions Pension Scheme Administration SIPP Fiscal Neutrality

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Parties

Intelligent Money Limited

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

Tax Appeal / First Tier Tribunal Judgment

Legal Issues

  1. 1 Whether fees paid to the scheme administrator of a SIPP pension are consideration for an exempt supply of insurance under VAT law
  2. 2 Whether the IM SIPP constitutes a contract of insurance for VAT purposes
  3. 3 Whether the Appellant assumed financial risk as required for VAT insurance exemption

Ratio Decidendi

The fees paid by members of the IM SIPP are not consideration for an exempt insurance transaction under VAT law because the Appellant does not assume any financial risk; the services provided are administration of the member’s own assets held in trust, and the exemption applies only where the supplier assumes risk in return for a premium.

Court Disposition

Appeal dismissed

Orders

  • No repayment of VAT to the Appellant
  • No sums due on the error correction notices