The ECU Group plc v Revenue & Customs [2010] UKFTT 297 (TC) (01 July 2010)

The ECU Group plc v Revenue & Customs [2010] UKFTT 297 (TC) (01 July 2010)

The essential aim and features of the Appellant’s services are the execution of foreign exchange transactions to reduce the capital value of a loan, fulfilling the specific, essential functions of transactions concerning currency, payments, and transfers under article 135(1)(d) and (e) VAT Directive and item 1, Group 5, Schedule 9, VATA. Where transactions are effected using a Prime Broker, the service also falls within the exemption as provision of intermediary services under item 5, Group 5, Schedule 9, VATA.

Citation
[2010] UKFTT 297 (TC)
Parties
Appellant: The ECU Group plc; Respondents: The Commissioners for Her Majesty’s Revenue and Customs (Value Added Tax)
Jurisdiction
United Kingdom
Judgment Date
01 July 2010
Procedural Posture
VAT Exemption Appeal / First Tier Tribunal Decision
Outcome
Appeal allowed
Legal Topics
VAT Exemption, Financial Intermediary Services, Currency Transactions, Payments and Transfers
Tax Law VAT Financial Services VAT Exemption Financial Intermediary Services Currency Transactions Payments and Transfers

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 5 Authorities cited 13 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

The ECU Group plc

Appellant

The Commissioners for Her Majesty’s Revenue and Customs (Value Added Tax)

Respondents

Procedural Posture

VAT Exemption Appeal / First Tier Tribunal Decision

Legal Issues

  1. 1 Whether services provided by the Appellant in respect of multi-currency mortgages are exempt for VAT purposes under article 135(1)(d) and (e) of the VAT Directive and items 1 and 5 of Group 5, Schedule 9, VATA
  2. 2 Whether the Appellant's services constitute transactions concerning currency, payments, transfers, or negotiation/intermediary services

Ratio Decidendi

The essential aim and features of the Appellant’s services are the execution of foreign exchange transactions to reduce the capital value of a loan, fulfilling the specific, essential functions of transactions concerning currency, payments, and transfers under article 135(1)(d) and (e) VAT Directive and item 1, Group 5, Schedule 9, VATA. Where transactions are effected using a Prime Broker, the service also falls within the exemption as provision of intermediary services under item 5, Group 5, Schedule 9, VATA.

Court Disposition

Appeal allowed

Orders

  • Appellant’s services are exempt from VAT for the reasons given in the decision.
  • Respondents to pay Appellant’s costs to be assessed (if not agreed) pursuant to rule 29(1)(b) of the VAT Tribunals Rules 1986.