In The Prudential Assurance Company Ltd v HMRC [2024] EWCA Civ 300 (26 March 2024) the Court of Appeal (CA) decided by a majority of two to one that fees for investment management services performed while the supplier and the appellant had been members of the same VAT group were subject to VAT. This was because that the fees were not invoiced or paid for until after the supplier left the VAT group. Two out of the three judges decided that the court was not bound by its earlier decision in B J Rice & Associates v C&E Commrs [1996] STC 581 (B J Rice).
Under agreements for investment management services performed while the appellant and the supplier were members of the same VAT group the supplier was entitled to charge performance fees if a hurdle rate was passed. The hurdle rate was not...
In The Prudential Assurance Company Ltd v HMRC [2024] EWCA Civ 300 (26 March 2024) the Court of Appeal (CA) decided by a majority of two to one that fees for investment management services performed while the supplier and the appellant had been members of the same VAT group were subject to VAT. This was because that the fees were not invoiced or paid for until after the supplier left the VAT group. Two out of the three judges decided that the court was not bound by its earlier decision in B J Rice & Associates v C&E Commrs [1996] STC 581 (B J Rice).
Under agreements for investment management services performed while the appellant and the supplier were members of the same VAT group the supplier was entitled to charge performance fees if a hurdle rate was passed. The hurdle rate was not...