Target Group Limited v The Commissioners for HMRC

Target Group Limited v The Commissioners for HMRC

The services supplied by Target to Shawbrook Bank are not exempt transactions concerning payments or transfers under Article 135(1)(d) of the Principal VAT Directive, as Target does not itself effect the legal and financial changes characteristic of the transfer of money; the loan accounts operated are not current accounts for VAT purposes; the services are standard rated for VAT purposes.

Parties
Appellant: Target Group Limited; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
England and Wales
Judgment Date
15 November 2019
Procedural Posture
VAT Appeal / Upper Tribunal (tax and Chancery Chamber) Appeal From First Tier Tribunal
Outcome
Appeal dismissed
Legal Topics
VAT Exemption, Loan Administration Services, Debt Collection, Transactions Concerning Payments or Transfers, Current Accounts, Composite Supply Classification
Tax Law VAT Law EU Law VAT Exemption Loan Administration Services Debt Collection Transactions Concerning Payments or Transfers Current Accounts +1 more

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Parties

Target Group Limited

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

VAT Appeal / Upper Tribunal (tax and Chancery Chamber) Appeal From First Tier Tribunal

Legal Issues

  1. 1 Whether loan administration services supplied by Target to Shawbrook Bank are exempt from VAT under Article 135(1)(d) of the Principal VAT Directive
  2. 2 Whether loan accounts operated by Target are current accounts for VAT purposes
  3. 3 Whether Target's services constitute transactions concerning payments or transfers

Ratio Decidendi

The services supplied by Target to Shawbrook Bank are not exempt transactions concerning payments or transfers under Article 135(1)(d) of the Principal VAT Directive, as Target does not itself effect the legal and financial changes characteristic of the transfer of money; the loan accounts operated are not current accounts for VAT purposes; the services are standard rated for VAT purposes.

Court Disposition

Appeal dismissed

Orders

  • Any application for costs must be made in writing within one month after the date of release of this decision as required by rule 10(5)(a) and (6) of the Tribunal Procedure (Upper Tribunal) Rules 2008.