Performance Leads Ltd v Revenue and Customs (VAT - Exemptions - Financial Intermediaries) [2025] UKFTT 660 (TC) (05 June 2025)

Performance Leads Ltd v Revenue and Customs (VAT - Exemptions - Financial Intermediaries) [2025] UKFTT 660 (TC) (05 June 2025)

The appellant's services constitute exempt intermediary services under Schedule 9 Group 5 Item 5 VAT Act 1994 because they bring together persons seeking financial advice and IFAs, with a meaningful assessment and filtering process that goes beyond mere advertising or acting as a conduit. The services are not market research, product design, or advertising, and the appellant acts in an intermediary capacity as defined by the legislation and relevant case law.

Citation
[2025] UKFTT 660
Parties
Appellant: Performance Leads Limited; Respondents: The Commissioners for His Majesty's Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
05 June 2025
Procedural Posture
VAT Exemption Appeal / First Tier Tribunal (tax Chamber) Final Judgment
Outcome
Appeal allowed
Legal Topics
VAT Exemptions, Financial Intermediaries, Interpretation of Schedule 9 Group 5 VAT Act 1994, Application of Principal VAT Directive 2006/112/ec
Tax Law European Union Law VAT Exemptions Financial Intermediaries Interpretation of Schedule 9 Group 5 VAT Act 1994 Application of Principal VAT Directive 2006/112/ec

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Parties

Performance Leads Limited

Appellant

The Commissioners for His Majesty's Revenue and Customs

Respondents

Procedural Posture

VAT Exemption Appeal / First Tier Tribunal (tax Chamber) Final Judgment

Legal Issues

  1. 1 Whether the appellant's lead generation services to IFAs are exempt intermediary services under Schedule 9 Group 5 Item 5 of the VAT Act 1994
  2. 2 Whether the appellant's activities constitute 'work preparatory to the conclusion of contracts' within Note 5 to Group 5
  3. 3 Whether the appellant's services are advertising or mere conduit, or amount to exempt intermediation

Ratio Decidendi

The appellant's services constitute exempt intermediary services under Schedule 9 Group 5 Item 5 VAT Act 1994 because they bring together persons seeking financial advice and IFAs, with a meaningful assessment and filtering process that goes beyond mere advertising or acting as a conduit. The services are not market research, product design, or advertising, and the appellant acts in an intermediary capacity as defined by the legislation and relevant case law.

Court Disposition

Appeal allowed

Orders

  • HMRC's decision refusing repayment of overpaid VAT is set aside.
  • The appellant's supplies are exempt from VAT under Schedule 9 Group 5 Item 5 VAT Act 1994.