Westinsure Group Ltd v Revenue & Customs [2013] UKFTT 114 (TC) (11 February 2013)

Westinsure Group Ltd v Revenue & Customs [2013] UKFTT 114 (TC) (11 February 2013)

The Tribunal held that Westinsure's services to member brokers, in exchange for membership fees, did not amount to the provision of insurance intermediary services as defined by Schedule 9 Group 2 of the Value Added Tax Act 1994 and Article 135(1)(a) Directive 2006/112/EC. Westinsure did not act as an intermediary in specific insurance transactions between insurers and insureds, but rather provided aggregation, marketing, and support services to brokers. The services lacked the necessary close nexus to particular insurance transactions and did not involve Westinsure acting in an intermediary capacity as required by law. Therefore, the exemption did not apply, and the supplies were subject...

Citation
[2013] UKFTT 114
Parties
Appellant: Westinsure Group Limited; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
11 February 2013
Procedural Posture
VAT Appeal / First Tier Tribunal (tax) Decision
Outcome
Appeal dismissed
Legal Topics
VAT Exemption, Insurance Intermediary Services, Interpretation of Schedule 9 Group 2 Value Added Tax Act 1994, Article 135(1)(a) Directive 2006/112/ec
Tax Law European Union Law VAT Exemption Insurance Intermediary Services Interpretation of Schedule 9 Group 2 Value Added Tax Act 1994 Article 135(1)(a) Directive 2006/112/ec

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Parties

Westinsure Group Limited

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

VAT Appeal / First Tier Tribunal (tax) Decision

Legal Issues

  1. 1 Whether the services provided by Westinsure to insurance brokers in exchange for membership fees are exempt from VAT as insurance intermediary services under Schedule 9 Group 2 of the Value Added Tax Act 1994 and Article 135(1)(a) Directive 2006/112/EC.

Ratio Decidendi

The Tribunal held that Westinsure's services to member brokers, in exchange for membership fees, did not amount to the provision of insurance intermediary services as defined by Schedule 9 Group 2 of the Value Added Tax Act 1994 and Article 135(1)(a) Directive 2006/112/EC. Westinsure did not act as an intermediary in specific insurance transactions between insurers and insureds, but rather provided aggregation, marketing, and support services to brokers. The services lacked the necessary close nexus to particular insurance transactions and did not involve Westinsure acting in an intermediary capacity as required by law. Therefore, the exemption did not apply, and the supplies were subject...

Court Disposition

Appeal dismissed

Orders

  • Westinsure's supplies of membership services to brokers are subject to VAT at the standard rate.
  • Westinsure is required to be registered for VAT purposes from 1 September 2005.