HMRC has lost an appeal against Trader Media Group and Insurancewide.com over the issue of VAT exemption for online insurance introductory services.
The Court of Appeal was unanimous in confirming that the services do qualify for VAT exemption.
Both websites introduce potential customers to insurers with a view to them purchasing an insurance policy and both receive commissions which are payable when a customer makes a purchase.
HMRC had argued that the companies were not insurance agents or brokers and that the act of introduction was not enough for them to supplying insurance intermediary services. HMRC tried to distinguish pure ‘introducers’ from ‘traditional’ insurance intermediaries on the basis that they did not play any role in negotiating the terms of...