Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Intra-group services and time of supply

04 April 2024
Categories: Tax cases
Prudential Assurance Company Ltd v CRC, Court of Appeal, 26 March 2024

Silverfleet Capital Ltd provided Prudential with investment management services for its with-profits fund. They were both members of the same VAT group until a management buy-out in 2007 resulted in Silverfleet ceasing to be a member of the group.

Under agreements made before the buyout Silverfleet was entitled to charge performance fees if a benchmark rate was exceeded. This happened only after Silverfleet left the VAT group. The issue was whether the performance fees were subject to VAT – as decreed by HMRC.

The First-tier Tribunal allowed Prudential’s appeal but the Upper Tribunal overturned that decision. The taxpayer appealed.

Prudential said the performance fees were consideration for services Silverfleet carried out when it was a member of the same VAT group as Prudential – so no VAT was chargeable (VATA 1994 s 43). HMRC disagreed saying the services were a continuous supply of services under VAT Regulation...

If you or your firm subscribes to, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or '' for further assistance.

back to top icon