Introduction to insurance

HMRC have outlined their position following the recent High Court judgment against the department in InsuranceWide.com Services v CRC; CRC v Trader Media Group Ltd.

The Revenue has been granted leave to appeal the decision to the Court of Appeal.

The appeals concerned the VAT liability of internet ‘click through’ services and whether introductory services such as this that involve no intermediation of the contracts themselves qualify as exempt insurance intermediary services.

The High Court found that both companies were insurance intermediaries for the purposes of the VAT exemption and an act of introduction with no further involvement in the intermediation of the contract of insurance qualified for exemption as an insurance-related service.

HMRC say they will pay claims for overpaid tax charged on insurance introductory services that follow the findings of the court in this...