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Were claims for mis sold PPI within the insurance exemption?

By Andrew Needham, October 2021

The appellant made claims on behalf of individual customers who have been mis-sold payment protection insurance (‘PPI’) by financial institutions. When those claims were successful, compensation was paid to the appellant’s customers and the appellant received a fee for its services, which was calculated as a percentage of the compensation paid to the customer. This was an appeal from the First-tier Tribunal (FTT) relating to decisions of HMRC that the appellant (a) made supplies that were liable to VAT at the standard rate, and (b) should have been registered for VAT with effect from 1 June 2009. The issue before the FTTl was whether or not the supplies made by the appellant were exempt supplies of insurance under VATA 1994 Schedule 9 Group 2. 

The FTT decided that the appellant’s services fell outside the exemption

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