Neither agent nor broker

The taxpayer company offered services to member insurance brokers helping them obtain better terms and benefits from insurance companies. HMRC decided the supplies were standard-rated for VAT not exempt under VATA 1994 sch 9 group 2 item 4.

The taxpayer appealed.

The First-tier Tribunal (FTT) said the company provided assessments of insurers which was characteristic of services provided by an insurance broker or agent but not as part of the transaction chain.

The situation distinguished the taxpayer’s services from those of a broker or agent to the effect its services had to be regarded as too remote from particular insurance transactions to enable it to benefit from the exemption.

The matter escalated to the Upper Tribunal which said the FTT had taken the correct approach: a broker provided a service to a client by finding a suitable policy; an agent in effect provided a...