Members obtained no protection against risk

The taxpayer charged annual fees to holders of self-invested pension plans (SIPPs) for services necessary to ensure the relevant conditions were met and that the plan was operated correctly – such as tax relief conditions were complied with and the holder had completed an ‘expression of wish’ form. It claimed that a SIPP qualified as a life insurance product and therefore its fees were exempt from VAT (VATA 1994 Sch 9 Group 2). HMRC disagreed on the basis that no insurance supplies were made and that the taxpayer supplied ‘services of administration of the member’s own assets’. The fees were therefore standard rated.

The First-tier Tribunal dismissed the taxpayer’s appeal.

The taxpayer and HMRC agreed that it was necessary whether the SIPP met the criteria set down by the Court of Justice of the EU (CJEU) in relation to the insurance exemption.

After referring to CJEU case law ...