10 June 2025
Performance Leads Ltd v HMRC [2025] UKFTT 00660 (TC)
The First-tier Tribunal has allowed the taxpayer’s appeal against HMRC’s decision to refuse repayment of overpaid VAT, on the basis that the Appellant qualified for the financial intermediaries exemption under Item 5, Group 5, Sch 9 of VATA 1994.
The Tribunal surveyed the past authorities on the scope of the exemption, confirming that for a financial intermediary to come within Item 5, it needs to do either of, rather than both of: i) bring together persons seeking and persons providing financial services; and ii) perform work preparatory to the conclusion of contracts.
The decision further contains helpful discussion of what constitutes “advertising” and acting as a “mere conduit,” activities which do not qualify for exemption under Item 5.
Quinlan Windle and Arthur Wong acted for the taxpayer.
You can find a copy of the judgment here.
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